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Paris, Idaho: Resilient Housing Market with Soaring Home Values
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Paris, Idaho, a small rural community in Bear Lake County, has experienced significant changes in its housing market over the past decade. This charming city has maintained a consistently high rate of owner-occupied housing while witnessing notable increases in average home prices and rent.
The homeownership rate in Paris has remained relatively stable, with a slight increase from 80% in 2017 to 84% in 2022. This trend coincides with a significant rise in average home prices. In 2019, the average home price was $171,833, which increased dramatically to $309,677 by 2022, representing an impressive 80% growth over just three years. This substantial appreciation in home values did not deter homeownership, suggesting strong local demand for housing and potential economic growth in the area.
Federal interest rates have played a role in shaping homeownership trends in Paris. The period from 2019 to 2021 saw historically low interest rates, dropping from 2.16% to 0.08%. This favorable financing environment likely contributed to the sustained high homeownership rates observed during this time. As interest rates began to rise in 2022 to 1.68%, the homeownership rate in Paris actually increased from 82% to 84%, indicating resilience in the local housing market.
The rental market in Paris has shown interesting trends as well. The percentage of renters decreased slightly from 20% in 2017 to 16% in 2022. Despite this decline in the renter population, average rent prices have seen a steady increase. In 2013, the average rent was $525, which rose to $881 by 2022, representing a 68% increase over nine years. This upward trend in rent prices, coupled with a decreasing renter population, suggests a tightening rental market with potentially higher-quality or more desirable rental properties becoming available.
Looking at the most recent data, the average home price in Paris reached $313,095 in 2023 and further increased to $315,196 in 2024. This continued appreciation, albeit at a slower rate, occurred despite the significant rise in federal interest rates to 5.02% in 2023 and 5.33% in 2024. These figures demonstrate the ongoing strength and resilience of the Paris housing market in the face of changing economic conditions.
Applying predictive models to forecast 5-year trends, it's anticipated that average home prices in Paris will continue to appreciate, albeit at a more moderate pace. The rate of increase may slow down due to the higher interest rate environment, potentially reaching around $350,000 by 2029. Average rent prices are also expected to continue their upward trajectory, potentially approaching $1,000 per month within the next five years, driven by housing demand and overall market conditions.
In summary, Paris has demonstrated a robust and resilient housing market over the past decade. The consistently high homeownership rates, coupled with significant increases in both average home prices and average rent, indicate a strong local economy and desirable living conditions. The city has shown an ability to maintain its high proportion of homeowners even in the face of rising home prices and fluctuating interest rates, suggesting a stable and attractive market for both residents and investors.
