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Norman, Oklahoma: Rising Home Values Amidst Shifting Ownership Trends
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
Norman, Oklahoma: A Decade of Housing Market Evolution Norman, located in Oklahoma, is a vibrant community known for its rich history and as the home of the University of Oklahoma. Over the past decade, the city has experienced significant changes in homeownership rates, average home prices, and average rent prices. The overall trend shows a slight decrease in homeownership, coupled with steadily increasing average home prices and average rent prices.
The homeownership rate in Norman has shown some fluctuation but has generally trended downward over the years. In 2013, the homeownership rate was 53%, which increased slightly to 55% in 2014 and 2016. However, by 2022, the rate had decreased to 51%. This decline in homeownership coincides with a substantial increase in average home prices. In 2013, the average home price was $150,250, which rose steadily to $232,178 by 2022, representing a 54.5% increase over nine years. This inverse relationship suggests that rising home prices may have made homeownership less attainable for some residents.
Federal interest rates have played a significant role in homeownership trends. From 2013 to 2016, when interest rates were exceptionally low (ranging from 0.11% to 0.40%), homeownership rates in Norman remained relatively stable at around 54-55%. However, as interest rates began to rise more substantially from 2017 onwards, reaching 1.68% in 2022, homeownership rates declined to 51%. This trend aligns with the general principle that lower interest rates tend to encourage homeownership due to more affordable financing options.
The rental market in Norman has also experienced notable changes. The percentage of renters increased from 47% in 2013 to 49% in 2022, mirroring the decline in homeownership. Concurrently, average rent prices have risen significantly. In 2013, the average rent was $747, which increased to $1,020 by 2022, representing a 36.5% increase. This rise in rent prices has outpaced inflation and may be attributed to factors such as increased demand for rental properties and the city's growing population, which rose from 118,200 in 2013 to 129,624 in 2022.
Looking at the most recent data, the average home price in Norman continued its upward trajectory, reaching $245,554 in 2023 and $250,170 in 2024. This represents a further increase of 7.7% from 2022 to 2024. Notably, federal interest rates have also risen significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact homebuying affordability and potentially influence future homeownership rates.
Applying predictive models to forecast 5-year trends, it is anticipated that average home prices in Norman will continue to rise, albeit at a potentially slower rate due to higher interest rates. Average home prices could reach approximately $275,000 to $290,000 by 2029. Similarly, average rent prices are expected to increase, potentially reaching $1,200 to $1,300 per month by 2029, driven by ongoing demand for rental properties and the city's continued population growth.
In summary, Norman has experienced a gradual shift towards a more renter-oriented market over the past decade, with homeownership rates declining slightly as average home prices and rent prices have increased substantially. The interplay between federal interest rates, housing affordability, and population growth has shaped these trends. As the city continues to evolve, balancing housing affordability with economic growth will likely remain a key challenge for policymakers and residents alike.
