Loading Content...
Newton, Kansas: Rising Home Values and Strong Ownership in a City with Rich History
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Newton, Kansas, a charming city in Harvey County, has experienced significant changes in homeownership and housing prices over the past decade. Known for its rich history and strong community spirit, Newton has shown a general trend of increasing homeownership, rising average home prices, and fluctuating average rent prices.
The homeownership rate in Newton has increased notably, rising from 66% in 2015 to 70% in 2022. This increase coincided with a substantial rise in average home prices. In 2012, the average home price in Newton was $90,471, which increased to $146,204 by 2022, representing a 61.6% increase over a decade. This strong appreciation in home values likely contributed to the growing appeal of homeownership in the city.
Federal interest rates have played a significant role in shaping homeownership trends in Newton. From 2012 to 2016, interest rates were historically low, ranging from 0.09% to 0.40%. During this period, homeownership rates in Newton remained relatively stable at around 67-68%. Interestingly, as interest rates began to rise more significantly from 2017 onwards, reaching 1.83% in 2018, Newton saw an increase in homeownership, climbing to 71% by 2019. This trend suggests that local factors such as job market stability or housing supply may have had a stronger influence on homeownership decisions than interest rates alone.
The rental market in Newton has experienced some fluctuations over the years. The percentage of renters decreased from 34% in 2015 to 30% in 2022. Despite this decline in the renter population, average rent prices have generally increased. In 2013, the average rent was $697, rising to $773 in 2022, an increase of 10.9%. However, rent prices peaked at $943 in 2021 before declining in 2022, possibly due to the shift towards homeownership or changes in the local economy.
Recent data shows that the average home price in Newton continued its upward trajectory, reaching $156,236 in 2023 and $160,485 in 2024. This represents a 9.8% increase from 2022 to 2024. This price appreciation occurred despite a significant rise in federal interest rates, which stood at 5.02% in 2023 and 5.33% in 2024. This suggests a strong local housing market that has remained resilient in the face of higher borrowing costs.
Predictive models forecast that average home prices in Newton will continue to rise over the next five years, potentially at a slower pace due to the higher interest rate environment. By 2029, the average home price could reach approximately $185,000 to $195,000. For rent prices, a moderate upward trend is expected, with average rents potentially reaching $850 to $900 by 2029, assuming economic conditions remain stable and housing supply keeps pace with demand.
In conclusion, Newton has demonstrated a robust housing market over the past decade, characterized by increasing homeownership rates and rising property values. The city has shown resilience to changing interest rate environments, suggesting strong local economic factors supporting the housing market. While rent prices have fluctuated, they have generally trended upward, albeit at a slower pace than home prices. These housing trends will play a crucial role in shaping Newton's future development and community composition.
