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Nicholasville's Housing Boom: Average Home Values Soar Amid Population Growth
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
Nicholasville, Kentucky, is a growing city located in Jessamine County. As of 2022, the city had a population of 39,251 and covered an area of 14.65 square miles. Over the past decade, Nicholasville has experienced notable shifts in homeownership rates and housing prices, reflecting the dynamic nature of its real estate market.
The homeownership rate in Nicholasville has shown an upward trend in recent years, increasing from 59% in 2017 to 67% in 2022. This rise in homeownership coincides with a significant increase in average home prices. In 2013, the average home price in Nicholasville was $143,459. By 2022, this figure had risen dramatically to $259,835, representing an impressive 81% increase over nine years.
The relationship between federal interest rates and homeownership rates in Nicholasville follows a well-established pattern. As interest rates remained low between 2013 and 2021, ranging from 0.08% to 0.4%, homeownership rates in the city increased. This trend is particularly evident from 2020 to 2022, when interest rates were at historic lows (0.38% in 2020 and 0.08% in 2021), and homeownership rates rose from 64% to 67%.
Conversely, the percentage of renters in Nicholasville has decreased in recent years, dropping from 40% in 2017 to 33% in 2022. Despite this decline in the renter population, average rent prices have remained relatively stable. In 2013, the average rent was $841, and by 2022 it had decreased slightly to $828. This stability in rent prices, coupled with the decrease in the renter population, suggests a balanced rental market in the city.
Looking at the most recent data, the average home price in Nicholasville continued to rise in 2023 and 2024, reaching $274,123 and $289,197 respectively. This represents a 5.5% increase from 2022 to 2023 and a further 5.5% increase from 2023 to 2024. Notably, federal interest rates also increased significantly during this period, rising to 5.02% in 2023 and 5.33% in 2024. Despite these higher interest rates, home prices in Nicholasville have continued to appreciate, indicating strong demand in the local housing market.
Applying predictive models to forecast 5-year trends, we can expect average home prices in Nicholasville to continue their upward trajectory, potentially reaching around $350,000 by 2029. This projection is based on the consistent growth pattern observed over the past decade. Average rent prices, which have been more stable, may see a moderate increase to approximately $900-$950 per month by 2029, assuming continued population growth and economic stability in the region.
In summary, Nicholasville's real estate market has shown robust growth in homeownership and home values over the past decade. The city has maintained a strong ownership market even in the face of rising interest rates, while the rental market has remained stable despite a decreasing renter population. These trends suggest a healthy and desirable housing market in Nicholasville, with potential for continued growth in the coming years.
