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Lexington, GA: Rising Home Values and Increasing Ownership in a Small but Vibrant 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
Lexington, a city in Georgia, has experienced notable shifts in its housing market over the past decade. This small but vibrant community has seen fluctuations in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market dynamics.
The homeownership rate in Lexington has shown resilience, with a generally upward trend since 2016. In 2016, the homeownership rate was 71%, which increased to 87% by 2022. This significant rise in homeownership coincided with a substantial increase in average home prices. In 2016, the average home price was $137,322, and by 2022, it had risen to $254,655, representing an impressive 85% increase over six years.
The relationship between federal interest rates and homeownership rates in Lexington appears to follow the typical pattern. As interest rates remained low from 2016 to 2020, ranging from 0.4% to 0.38%, homeownership rates climbed from 71% to 85%. This trend aligns with the general principle that lower interest rates make mortgages more affordable, encouraging home purchases.
Renter percentages in Lexington have inversely mirrored the homeownership trend, decreasing from 29% in 2016 to 13% in 2022. Interestingly, average rent prices have shown volatility during this period. In 2016, the average rent was $612, which decreased to $501 in 2019 before rising again to $841 in 2022. This 68% increase in average rent from 2019 to 2022 occurred despite a declining renter population, suggesting other factors such as housing quality improvements or market pressures may be at play.
In 2023 and 2024, Lexington's housing market continued to evolve. The average home price reached $269,923 in 2023 and further increased to $285,531 in 2024, showing a continued upward trajectory. Concurrently, federal interest rates climbed significantly to 5.02% in 2023 and 5.33% in 2024, potentially impacting future homeownership trends.
Looking ahead, predictive models suggest that average home prices in Lexington may continue to rise over the next five years, potentially reaching around $350,000 by 2029 if current trends persist. Average rent prices could also see an upward trend, 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, Lexington has demonstrated a strong trend towards homeownership, with significant increases in both the percentage of homeowners and average home prices. The rental market, while shrinking in terms of percentage, has seen rising average rents in recent years. The city's housing market appears robust, with continued growth in property values despite rising interest rates, indicating a potentially attractive market for both homeowners and investors in the coming years.
