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Louisville, Mississippi: Rising Home Values and Ownership Rates in a Small 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
Louisville, Mississippi, a small city with a population of 9,752 as of 2022, has experienced significant changes in its housing market over the past decade. Located in Winston County, this Southern town has seen notable shifts in homeownership rates and housing prices. The city has witnessed a general trend of increasing homeownership, rising average home prices, and fluctuating average rent prices. The homeownership rate in Louisville has shown a significant upward trend, increasing from 63% in 2013 to 66% in 2022. This rise in homeownership coincided with a substantial increase in average home prices. In 2014, the average home price was $74,748, which steadily climbed to $125,017 by 2022, representing a 67% increase over eight years. This positive correlation between homeownership rates and average home prices suggests that despite rising costs, more residents were able to enter the housing market.
Federal interest rates have played a crucial role in shaping homeownership trends in Louisville. The period from 2014 to 2021 saw historically low interest rates, ranging from 0.09% to 1.68%. These low rates likely contributed to the increase in homeownership, as they made mortgages more affordable for potential buyers. The homeownership rate peaked at 70% in 2021 when interest rates were at a mere 0.08%, illustrating the strong influence of favorable financing conditions on homebuying decisions.
Conversely, the percentage of renters in Louisville has decreased from 37% in 2013 to 34% in 2022. Despite this decline, average rent prices have shown an overall upward trend. In 2013, the average rent was $560, which increased to $604 by 2022, with some fluctuations in between. The highest average rent was recorded in 2019 at $680. The inverse relationship between the declining renter population and rising rent prices could be attributed to factors such as improved housing quality or increased demand for the remaining rental properties.
In 2023 and 2024, Louisville's housing market showed signs of stabilization. The average home price in 2023 was $124,135, slightly lower than the 2022 figure, but it increased marginally to $124,910 in 2024. This trend occurred alongside a significant rise in federal interest rates, which reached 5.02% in 2023 and 5.33% in 2024. These higher interest rates may have contributed to the slowing growth in home prices by making mortgages more expensive for potential buyers.
Looking ahead, based on the historical data and recent trends, we can project that average home prices in Louisville may continue to increase moderately over the next five years, potentially reaching around $135,000 to $140,000 by 2029. Average rent prices might also see a gradual rise, possibly reaching $650 to $700 per month in the same period. However, these projections could be influenced by various factors, including economic conditions, local development, and changes in federal interest rates.
In summary, Louisville has experienced a notable increase in homeownership rates and average home prices over the past decade, likely facilitated by low interest rates. The rental market has seen a decrease in the percentage of renters but an overall increase in average rent prices. Recent data suggests a stabilization in the housing market, with potential for moderate growth in both home prices and rents in the coming years. These trends reflect Louisville's evolving housing landscape and its resilience in the face of changing economic conditions.
