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Lewiston, Idaho: Rising Home Values and Strong Ownership in a Riverside City
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
Lewiston, Idaho, a vibrant city nestled at the confluence of the Snake and Clearwater rivers, has experienced notable shifts in its housing market over the past decade. With a population of 36,435 in 2022, Lewiston has seen fluctuations in homeownership rates and significant changes in average home and rent prices. The city's housing landscape has been characterized by a generally high rate of homeownership, averaging around 70%, while average home prices have shown a consistent upward trend, particularly in recent years.
The relationship between homeownership rates and average home prices in Lewiston reveals interesting patterns. In 2013, when the homeownership rate was 68%, the average home price was $169,842. As home prices steadily increased, reaching $226,952 by 2019, the homeownership rate rose to 73%. This trend suggests that rising home values did not deter homeownership in Lewiston. In fact, the highest homeownership rate of 73% persisted from 2019 through 2021, even as average home prices surged to $303,089 in 2021, indicating a strong desire for homeownership despite increasing costs.
Federal interest rates have played a role in shaping Lewiston's homeownership trends. The period from 2013 to 2020 saw historically low interest rates, ranging from 0.09% to 2.16%. This low-interest environment likely contributed to the sustained high homeownership rates observed during this time. For instance, as interest rates remained below 0.5% from 2013 to 2016, homeownership rates held steady around 68-69%. The slight increase in homeownership to 71% in 2017 coincided with a modest rise in interest rates to 1%, suggesting that Lewiston residents may have been motivated to purchase homes before rates increased further.
Renter percentages and average rent prices in Lewiston have shown an inverse relationship to homeownership trends. As homeownership rates increased, the percentage of renters decreased from 31% in 2013 to 27% in 2021. Interestingly, average rent prices have not shown a consistent upward trend despite the decrease in renter population. Average rent prices fluctuated, starting at $736 in 2013, peaking at $768 in 2015, then dipping to $711 in 2017 before rising again to $836 in 2021. This volatility in rent prices, despite a decreasing renter population, could be attributed to factors such as changes in housing supply or local economic conditions.
In 2023 and 2024, Lewiston's housing market continued its upward trajectory, with average home prices reaching $361,512 in 2023 and further increasing to $367,975 in 2024. This represents a significant jump from the $356,488 average in 2022. Concurrently, federal interest rates have risen sharply, reaching 5.02% in 2023 and 5.33% in 2024, marking a substantial increase from the 1.68% rate in 2022. These higher interest rates may impact future homeownership trends and affordability in Lewiston.
Looking ahead, predictive models suggest that Lewiston's housing market will likely continue to see growth in both home prices and rent. Based on the trends observed, average home prices could potentially reach around $400,000 within the next five years if the current growth rate persists. Average rent prices, which have shown more variability, may stabilize and gradually increase, potentially reaching $900-$950 per month in the same timeframe. However, these projections could be influenced by various factors, including economic conditions, population growth, and housing supply changes.
In summary, Lewiston's housing market has demonstrated resilience and growth, with consistently high homeownership rates despite rising home prices. The interplay between federal interest rates, homeownership, and rental trends has shaped a dynamic housing landscape. As the city moves forward, the balance between homeownership and renting, coupled with the trajectory of home and rent prices, will be crucial factors in determining Lewiston's housing affordability and accessibility for its residents.
