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Parma, Idaho: A Decade of Home Value Growth and Stable Ownership in an Agricultural Community
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
Parma, Idaho is a small city located in Canyon County, known for its agricultural heritage and tight-knit community. Over the past decade, Parma has experienced fluctuations in homeownership rates and significant changes in average home and rent prices. The city has seen a general trend of increasing home values, while homeownership rates have remained relatively stable with some variations.
From 2013 to 2022, Parma's homeownership rate fluctuated between 67% and 73%. The city saw its highest homeownership rate of 73% in 2018, coinciding with an average home price of $218,634. However, by 2022, the homeownership rate had decreased to 67%, while the average home price had more than doubled to $503,448. This inverse relationship suggests that rising home prices may have made homeownership less accessible for some residents.
Federal interest rates have played a role in homeownership trends in Parma. In 2013, when interest rates were at a low 0.11%, the homeownership rate was 69%. As interest rates remained low through 2020, hovering around 0.1% to 0.4%, homeownership rates in Parma generally stayed above 70%. However, as interest rates began to rise in 2022 to 1.68%, the homeownership rate dropped to 67%, indicating that higher borrowing costs may have deterred some potential buyers.
Renter percentages in Parma have shown an inverse relationship to homeownership rates, ranging from 27% to 33% between 2013 and 2022. The average rent price has fluctuated during this period, with notable increases. In 2013, the average rent was $948, rising to $1,033 in 2014. After a dip to $884 in 2016, rent prices steadily increased, reaching $1,004 by 2022. This 5.9% increase in average rent from 2013 to 2022 coincided with a 2.6% population growth, suggesting that increased demand may have contributed to rising rent prices.
In 2023, Parma saw a slight decrease in average home prices to $462,225, down from the peak of $503,448 in 2022. This trend continued into 2024, with average home prices reaching $464,880. Notably, federal interest rates increased significantly to 5.02% in 2023 and further to 5.33% in 2024, which may have contributed to the stabilization of home prices.
Looking ahead, based on the historical data and current trends, it's projected that average home prices in Parma may experience moderate growth over the next five years, potentially reaching around $525,000 by 2029. Average rent prices are expected to continue their upward trajectory, potentially surpassing $1,100 by 2029, assuming consistent population growth and economic conditions.
In summary, Parma has experienced significant growth in average home prices over the past decade, with a slight correction in recent years. Homeownership rates have remained relatively stable despite these price increases, though they have shown sensitivity to rising interest rates. Rent prices have also trended upward, reflecting the city's growing population and housing demand. As Parma continues to evolve, these housing market dynamics will likely play a crucial role in shaping the city's future development and community composition.
