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Meridian, Idaho: Home Values and Ownership in a Rapidly Growing 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
Meridian, Idaho, is a rapidly growing city located in the Treasure Valley region. Known for its family-friendly atmosphere and excellent schools, Meridian has experienced significant population growth and changes in its housing market over the past decade. The city has seen fluctuations in homeownership rates, with a general trend towards higher average home prices and increasing average rent prices.
The relationship between homeownership percentages and average home prices in Meridian shows an interesting pattern. In 2013, the homeownership rate was 75%, with an average home price of $204,033. As home prices steadily increased, reaching $335,201 in 2019, the homeownership rate remained relatively stable, peaking at 78% in 2014 and 2019. However, a significant shift occurred in 2022, when the average home price surged to $571,632, coinciding with a drop in homeownership to 71%. This suggests that rapid price appreciation may have priced some potential buyers out of the market.
Federal interest rates have played a role in homeownership trends in Meridian. From 2013 to 2020, interest rates remained relatively low, ranging from 0.09% to 2.16%. During this period, homeownership rates in Meridian were generally high, between 74% and 78%. The low interest rates likely contributed to more affordable financing options, supporting higher homeownership levels. However, as interest rates began to rise sharply in 2022 to 1.68%, and further in 2023 to 5.02%, we observed a corresponding decrease in homeownership rates to 71% in 2022.
Renter percentages and average rent prices in Meridian have shown a general upward trend. In 2013, the renter percentage was 25%, with an average rent of $1,070. By 2022, the renter percentage increased to 29%, while the average rent rose significantly to $1,789. This 67% increase in average rent over nine years coincided with a 72% population growth from 83,594 in 2013 to 129,730 in 2022. The rising population likely contributed to increased demand for rental properties, driving up both the renter percentage and average rent prices.
In 2023 and 2024, Meridian's housing market showed signs of stabilization after the rapid growth seen in previous years. The average home price in 2023 was $516,170, representing a decrease from the 2022 peak of $571,632. In 2024, the average home price slightly increased to $521,931. This cooling trend in home prices coincides with higher interest rates, which reached 5.33% in 2024, potentially dampening demand in the housing market.
Looking ahead, predictive models suggest that average home prices in Meridian may continue to experience moderate growth over the next five years, albeit at a slower pace than the rapid appreciation seen in the early 2020s. Average rent prices are also expected to increase, driven by continued population growth and demand for housing. However, the rate of increase may be tempered by new housing developments and potential shifts in the local economy.
In summary, Meridian's housing market has undergone significant changes, characterized by substantial increases in both home prices and rent costs. The city has maintained relatively high homeownership rates despite rising prices, although recent trends suggest a potential shift towards more renters. The interplay between population growth, economic factors, and interest rates will likely continue to shape Meridian's housing landscape in the coming years, with moderate growth expected in both the ownership and rental markets.
