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Norfolk, Nebraska: Rising Home Values and Stable Ownership in a 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
Norfolk, Nebraska, a vibrant city in the northeastern part of the state, is known for its diverse economy and rich agricultural heritage. The city has experienced steady growth in both population and housing market over the past decade. Norfolk has seen a general trend of increasing homeownership rates, rising average home prices, and fluctuating average rent prices.
The homeownership rate in Norfolk has shown a gradual increase from 2013 to 2022. In 2013, 63% of residents owned their homes, and this figure rose to 64% by 2022. This upward trend correlates with the significant growth in average home prices during the same period. In 2013, the average home price in Norfolk was $123,113, which steadily increased to $220,310 by 2022, representing a substantial 78.9% increase over nine years. This trend suggests that despite rising home prices, more residents were able to enter the housing market as owners.
The relationship between federal interest rates and homeownership rates in Norfolk follows a typical pattern. From 2013 to 2016, when interest rates were exceptionally low (ranging from 0.11% to 0.4%), the homeownership rate remained stable at around 63%. As interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), the homeownership rate actually increased slightly to 64% by 2018. This could indicate that residents were motivated to buy homes before interest rates potentially climbed higher.
Renter percentages in Norfolk have shown a slight decline, mirroring the increase in homeownership. In 2013, 37% of residents were renters, and this figure decreased to 36% by 2022. Interestingly, average rent prices have fluctuated during this period. The average rent was $664 in 2013, peaked at $726 in 2021, and then decreased to $693 in 2022. These fluctuations may be influenced by factors such as local economic conditions and housing supply.
As of 2024, the average home price in Norfolk has reached $235,651, continuing the upward trend observed in previous years. The federal interest rate for 2024 stands at 5.33%, which is significantly higher than the rates seen in the past decade. This increase in interest rates could potentially impact future homeownership rates and housing market dynamics in Norfolk.
Looking ahead, based on the historical data and current trends, it's projected that average home prices in Norfolk will continue to rise over the next five years, albeit potentially at a slower rate due to higher interest rates. Average rent prices are expected to remain relatively stable with modest increases, influenced by factors such as housing demand and overall economic conditions in the region.
In summary, Norfolk has experienced a steady increase in homeownership rates and substantial growth in average home prices over the past decade. The rental market has seen slight declines in the percentage of renters, with fluctuating average rent prices. The city's housing market has demonstrated resilience and growth, reflecting its economic stability and attractiveness to residents.
