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Lowman, Idaho: Soaring Home Values and Ownership Rates in a Small 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
Lowman, a small community in Idaho, has experienced significant changes in its housing market over the past decade. This analysis explores the trends in homeownership rates, average home prices, and average rent prices, providing insights into the local real estate dynamics. The ownership percentage in Lowman has shown a consistent upward trend, rising from 68% in 2013 to an impressive 92% in 2022. This substantial increase in homeownership has been accompanied by a significant rise in average home prices. In 2013, the average home price in Lowman was $115,557, which steadily increased to $334,070 by 2022, representing a remarkable 189% growth over nine years.
The relationship between federal interest rates and homeownership rates in Lowman appears to follow the well-established trend of lower interest rates encouraging higher homeownership. For instance, as interest rates remained low between 2013 and 2016 (ranging from 0.11% to 0.4%), homeownership increased from 68% to 76%. The continued low interest rates in subsequent years corresponded with further increases in homeownership, reaching 92% by 2022 despite a slight rise in interest rates to 1.68%.
As homeownership rates climbed, the percentage of renters in Lowman decreased from 32% in 2013 to just 8% in 2022. Interestingly, average rent prices showed significant volatility during this period. In 2013, the average rent was $148, which fluctuated over the years, reaching a low of $129 in 2014 and a high of $920 in 2022. This substantial increase in average rent, despite the declining renter population, could be attributed to various factors such as limited rental inventory or improved quality of available rental properties.
In 2023, the average home price in Lowman experienced a slight dip to $327,866, marking a 1.9% decrease from the previous year. However, 2024 saw a rebound with the average home price increasing to $339,022, a 3.4% rise from 2023. It's worth noting that federal interest rates also saw significant increases during this period, reaching 5.02% in 2023 and 5.33% in 2024, which could potentially impact future homeownership trends.
Looking ahead, predictive models suggest that average home prices in Lowman may continue to rise over the next five years, albeit at a potentially slower rate due to higher interest rates. Average rent prices are also expected to increase, possibly driven by limited rental inventory and the overall appreciation of property values in the area.
In summary, Lowman has witnessed a remarkable increase in homeownership rates over the past decade, accompanied by substantial growth in average home prices. The inverse relationship between homeownership and rental percentages, coupled with the volatile yet ultimately increasing average rent prices, paints a picture of a dynamic and evolving housing market in this Idaho community.
