Loading Content...
Lawrence, Kansas: Rising Home Values and Shifting Ownership in a College Town
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Lawrence, Kansas, a vibrant college town home to the University of Kansas, has experienced significant changes in its housing market over the past decade. The city, known for its rich history and cultural diversity, has seen fluctuations in homeownership rates, average home prices, and average rent prices. Generally, Lawrence has maintained a higher percentage of renters compared to homeowners, with average home prices showing a consistent upward trend and average rent prices experiencing more variability.
The relationship between homeownership rates and average home prices in Lawrence reveals some interesting patterns. In 2013, the homeownership rate was 47%, with an average home price of $167,651. As average home prices steadily increased, reaching $211,283 by 2019, the homeownership rate dropped to 41%. This inverse relationship suggests that rising home prices may have made homeownership less attainable for some residents. However, by 2022, despite average home prices climbing to $282,899, the homeownership rate rebounded slightly to 45%, indicating a complex interplay of factors influencing homeownership beyond just price.
Federal interest rates have played a role in shaping homeownership trends in Lawrence. From 2013 to 2016, interest rates remained low, hovering around 0.1% to 0.4%, coinciding with relatively stable homeownership rates between 45% and 47%. As interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), homeownership rates dipped to their lowest point of 41% in 2019. This trend aligns with the general understanding that higher interest rates can make mortgages less affordable, potentially discouraging homeownership.
Renter percentages and average rent prices in Lawrence have shown some correlation over the years. In 2013, 53% of the population were renters, with an average rent of $831. By 2019, the renter percentage increased to 59%, while average rent rose to $965. This upward trend in both renter percentage and rent prices could be attributed to factors such as the growing student population and increasing housing demand. However, there have been fluctuations, such as in 2018 when the renter percentage dropped to 53% despite average rent climbing to $964, suggesting that other economic or demographic factors were at play.
In 2023 and 2024, Lawrence's housing market continued to evolve. The average home price in 2023 reached $297,932, a significant increase from previous years. In 2024, it further rose to $307,310, indicating a continued upward trend in home values. Concurrently, federal interest rates climbed to 5.02% in 2023 and 5.33% in 2024, potentially impacting homebuying decisions and affordability for Lawrence residents.
Looking ahead, predictive models suggest that average home prices in Lawrence may continue to rise over the next five years, potentially reaching around $350,000 by 2029 if current trends persist. Average rent prices are also expected to increase, albeit at a potentially slower rate, possibly approaching $1,100 per month in the same timeframe. However, these projections are subject to various economic factors and local market conditions.
In summary, Lawrence's housing market has demonstrated resilience and growth, with steadily increasing average home prices despite fluctuations in homeownership rates. The rental market has remained strong, reflecting the city's significant student population and changing demographics. The interplay between federal interest rates, housing prices, and ownership trends underscores the complex dynamics shaping Lawrence's real estate landscape. As the city continues to grow and evolve, these trends will likely play a crucial role in shaping its housing market and community composition in the years to come.
