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Luther's Housing Market: Rising Home Values and High Ownership Rates
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
Luther, Oklahoma, is a small city located in Oklahoma County. With a population of 5,089 in 2022 and a land area of 15.76 square miles, it offers a suburban feel with a mix of urban amenities. The city has experienced stable homeownership rates and steady growth in average home prices over the past decade, while average rent prices have shown some fluctuation.
Homeownership in Luther has remained consistently high, with slight variations over the years. In 2013, the homeownership rate stood at 88%, and by 2022, it had increased slightly to 89%. This stability in homeownership coincides with a steady rise in average home prices. In 2013, the average home price was $114,170, and it grew consistently year over year, reaching $242,946 by 2022. This represents a significant increase of 112.8% over the nine-year period, indicating a strong local housing market.
The federal interest rates have played a role in shaping homeownership trends in Luther. From 2013 to 2016, interest rates remained low, ranging from 0.11% to 0.40%, which likely contributed to the maintained high levels of homeownership. As interest rates began to rise more significantly from 2017 (1.00%) to 2019 (2.16%), homeownership rates in Luther remained stable at 86-89%, suggesting a resilient local housing market.
Renter percentages in Luther have remained relatively low, fluctuating between 11% and 15% from 2013 to 2022. The average rent prices have shown some variability over this period. In 2013, the average rent was $797, which increased to $863 by 2016. However, there was a slight decline in subsequent years, with the average rent dropping to $749 in 2022. This decrease in average rent, coupled with the growing population (from 4,477 in 2013 to 5,089 in 2022), suggests that the rental market in Luther has become more affordable and accessible to residents.
Looking at the most recent data, the average home price in Luther continued to rise, reaching $247,542 in 2023 and $255,895 in 2024. This represents a 5.3% increase from 2022 to 2024. Concurrently, federal interest rates have also increased significantly, rising to 5.02% in 2023 and 5.33% in 2024. Despite these higher interest rates, the continued growth in home prices suggests ongoing demand in the Luther housing market.
Applying predictive models to forecast 5-year trends, we can expect the average home prices in Luther to continue their upward trajectory, potentially reaching around $300,000 by 2029. This projection is based on the consistent growth pattern observed over the past decade. For average rent prices, the forecast suggests a potential stabilization or slight increase, possibly reaching around $850-$900 per month by 2029, assuming economic conditions remain relatively stable.
In summary, Luther has demonstrated a robust and stable housing market characterized by high homeownership rates and steadily increasing average home prices. The rental market has shown more variability but remains a smaller segment of the overall housing landscape. The city's ability to maintain high homeownership rates despite rising home prices and fluctuating interest rates indicates a strong local economy and desirable living conditions. As Luther continues to grow, it is likely to see further appreciation in property values while maintaining its character as a predominantly owner-occupied community.
