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Plainfield, Indiana: Rising Home Values and Shifting Ownership in a Growing Suburb
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
Plainfield, Indiana, a suburban town located just southwest of Indianapolis, has experienced significant growth and changes in its housing market over the past decade. With a population of 38,836 in 2022 and covering an area of 25.87 square miles, Plainfield has seen notable shifts in homeownership rates, average home prices, and average rent prices.
The homeownership rate in Plainfield has shown a declining trend since 2013. In 2013, 75% of the population were homeowners, but this figure decreased to 65% by 2022. Simultaneously, average home prices have seen a substantial increase. In 2013, the average home price was $158,296, which rose steadily to $303,701 by 2022, representing a 91.9% increase over nine years. This inverse relationship between homeownership rates and average home prices suggests that rising property values may have made homeownership less attainable for some residents.
Federal interest rates have played a significant role in shaping homeownership trends in Plainfield. From 2013 to 2016, interest rates remained historically low, hovering around 0.1-0.4%. During this period, homeownership rates in Plainfield were relatively stable, ranging from 70-75%. However, as interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, homeownership rates declined more rapidly, falling to 65% by 2022. This trend aligns with the general principle that lower interest rates tend to encourage homeownership due to more affordable financing options.
The renter population in Plainfield has grown correspondingly with the decline in homeownership. The percentage of renters increased from 25% in 2013 to 35% in 2022. Average rent prices have also risen during this period, though not as dramatically as home prices. In 2013, the average rent was $1,068, which increased to $1,252 by 2022, representing a 17.2% rise. The growing renter population, coupled with rising rent prices, suggests an increasing demand for rental properties in Plainfield.
Looking at more recent data, the average home price in Plainfield continued to rise in 2023, reaching $312,681, and further increased to $319,416 in 2024. This represents a modest 2.2% increase from 2023 to 2024, indicating a potential slowdown in the rapid price growth observed in previous years. Interestingly, federal interest rates have also seen a significant increase, rising to 5.02% in 2023 and 5.33% in 2024, which may impact future homeownership trends and housing affordability.
Based on the historical trends and current market conditions, we can project potential 5-year trends for Plainfield's housing market. Average home prices are likely to continue increasing, but at a more moderate pace, potentially reaching around $350,000-$375,000 by 2029. Average rent prices may also continue to rise, possibly reaching $1,400-$1,500 per month in the same timeframe. However, these projections are subject to various economic factors and local market conditions.
In summary, Plainfield has experienced a shift towards a higher proportion of renters, driven by rising home prices and fluctuating interest rates. The inverse relationship between homeownership rates and average home prices highlights the growing challenges of affordability in the local housing market. As the town continues to grow and evolve, balancing housing affordability with market demand will likely remain a key consideration for local policymakers and residents alike.
