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Leland, Michigan: Rising Home Values and Dynamic Ownership Trends in a Scenic Lake Community
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
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Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Leland, located in Michigan, is a picturesque community known for its scenic beauty and proximity to Lake Michigan. This charming town has experienced fluctuations in homeownership rates and significant growth in average home prices over the past decade. The rental market has also seen changes, with average rent prices generally increasing alongside shifts in the renter population.
The relationship between homeownership rates and average home prices in Leland presents an interesting trend. In 2013, the homeownership rate was 89%, with an average home price of $395,629. As average home prices steadily increased, reaching $569,075 in 2019, the homeownership rate slightly decreased to 84%. This trend continued into 2021, with average home prices surging to $774,594 while the homeownership rate dropped to 75%. However, 2022 saw a rebound in homeownership to 84% despite a further increase in average home prices to $966,641.
Federal interest rates appear to have influenced homeownership rates in Leland. From 2013 to 2015, when interest rates were exceptionally low (0.11% to 0.13%), homeownership rates remained high at 86-89%. As interest rates began to rise from 2016 onwards, reaching 1.83% in 2018, homeownership rates showed a slight decline to 82%. The sharp drop in interest rates to 0.38% in 2020 coincided with a minor decrease in homeownership to 80%, possibly due to economic uncertainties during that period.
The rental market in Leland has shown interesting trends in relation to average rent prices and renter percentages. In 2013, the renter percentage was 11% with an average rent of $836. As the renter percentage increased to 18% in 2017, the average rent remained relatively stable at $846. However, by 2021, the renter percentage reached 25% while average rent rose significantly to $1,055. Interestingly, in 2022, despite a decrease in the renter percentage to 16%, the average rent continued to climb to $1,164.
Looking at the most recent data, the average home price in Leland reached $1,018,672 in 2023 and further increased to $1,050,200 in 2024. This represents a substantial rise from previous years, indicating a strong housing market in the area. Concurrently, federal interest rates have also risen significantly, reaching 5.02% in 2023 and 5.33% in 2024, which may impact future homebuying trends.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in Leland will continue to rise, potentially reaching around $1,300,000 by 2029. This projection is based on the consistent upward trend observed over the past decade. For average rent prices, we expect a continued increase, potentially reaching approximately $1,400 per month by 2029, assuming the trend of rising rents persists.
In summary, Leland has experienced significant growth in both average home prices and rent prices over the past decade. While homeownership rates have fluctuated, they have generally remained high despite rising home prices. The rental market has seen an increase in both renter percentages and average rent prices, reflecting the changing dynamics of the local housing market. The recent sharp rise in federal interest rates may influence future homebuying trends, potentially affecting the balance between homeownership and renting in the coming years.
