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Papillion's Rising Home Values: A Decade of Growth in Nebraska's Vibrant City
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Papillion, a vibrant city in Nebraska, has experienced significant growth and development over the past decade. Known for its excellent quality of life and strong community spirit, Papillion has seen interesting trends in homeownership rates, average home prices, and average rent prices since 2013.
The homeownership rate in Papillion has remained relatively stable, with a slight downward trend from 74% in 2013 to 71% in 2022. During this same period, average home prices have shown a steady increase. In 2013, the average home price was $220,323, and by 2022, it had risen to $377,543, representing a substantial 71.4% increase over nine years. This upward trend in home prices, coupled with the slight decrease in homeownership rates, suggests that while Papillion remains an attractive place to own a home, rising prices may be making it more challenging for some residents to enter the housing market.
Federal interest rates have played a significant role in shaping homeownership trends in Papillion. From 2013 to 2016, interest rates remained extremely low, hovering around 0.1-0.4%. During this period, homeownership rates in Papillion stayed relatively stable at around 73-74%. As interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, we observed a slight decline in homeownership rates to 71%. This trend aligns with the general principle that lower interest rates tend to encourage homeownership due to more affordable financing options.
The percentage of renters in Papillion has shown a gradual increase from 24% in 2013 to 29% in 2022. Correspondingly, average rent prices have also risen, albeit with some fluctuations. In 2013, the average rent was $1,369, and by 2022, it had increased to $1,437, representing a 5% rise over nine years. The growing renter population, coupled with rising rent prices, suggests an increasing demand for rental properties in Papillion. This trend may be partially attributed to the city's population growth, which increased from 34,598 in 2013 to 42,680 in 2022, a 23.4% increase that likely contributed to higher housing demand overall.
Looking at more recent data, the average home price in Papillion continued its upward trajectory, reaching $392,969 in 2023 and $400,154 in 2024. This represents a 4.1% increase from 2022 to 2023 and a further 1.8% increase from 2023 to 2024. Interestingly, federal interest rates also saw a significant jump, rising to 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homeownership trends and could potentially slow down the rate of home price appreciation.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in Papillion will continue to rise, albeit at a potentially slower pace due to higher interest rates. By 2029, average home prices could reach approximately $450,000 to $475,000, assuming a more moderate annual growth rate of 2-3%. For average rent prices, we project a continued upward trend, potentially reaching $1,600 to $1,700 by 2029, based on historical patterns and anticipated population growth.
In summary, Papillion has demonstrated strong growth in both population and housing values over the past decade. While homeownership rates have slightly decreased, they remain relatively high at 71%. The city has seen substantial appreciation in average home prices, particularly from 2013 to 2022, with continued growth in recent years. Rental demand has increased, as evidenced by the growing percentage of renters and rising average rent prices. These trends, combined with the city's population growth and recent interest rate increases, paint a picture of a dynamic and evolving housing market in Papillion.
