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Plainfield, Iowa: Rising Home Values and Ownership Rates in a Small Midwest City
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, Iowa, is a small city with a population of 894 as of 2022. This charming Midwest community has experienced notable shifts in homeownership rates and housing prices over the past decade. The city has maintained a high rate of owner-occupied housing, with a trend towards increasing homeownership in recent years. Concurrently, average home prices and average rent have shown an upward trajectory, reflecting broader economic trends and local market dynamics.
The homeownership rate in Plainfield has seen a steady increase from 81% in 2013 to 90% in 2022. This rise in homeownership coincides with a significant increase in average home prices. In 2019, the average home price was $153,656, which rose to $189,168 by 2022, representing a 23% increase over just three years. This trend suggests a strong correlation between rising home values and the growing preference for homeownership in Plainfield.
Federal interest rates have played a crucial role in shaping homeownership trends in Plainfield. The period from 2013 to 2021 saw historically low interest rates, ranging from 0.08% to 1.68%. These low rates likely contributed to the increase in homeownership, as they made mortgages more affordable for potential buyers. The sharp rise in homeownership from 85% in 2014 to 89% in 2021 coincides with this period of low interest rates, demonstrating the impact of favorable financing conditions on homebuying decisions.
The rental market in Plainfield has experienced a corresponding decline as homeownership increased. The percentage of renters decreased from 19% in 2013 to 10% in 2022. Despite this decline, average rent prices have shown an overall upward trend. The average rent increased from $530 in 2013 to $646 in 2022, with some fluctuations in between. The peak average rent of $758 was observed in 2021, coinciding with the city's highest recorded population of 1,081 in 2019. This suggests that despite the shrinking renter pool, demand for rental properties remained strong enough to drive up prices.
In 2023 and 2024, Plainfield's housing market continued its upward trajectory. The average home price reached $202,293 in 2023 and further increased to $206,351 in 2024, representing a 9% growth from 2022 to 2024. This rise occurred despite a significant increase in federal interest rates, which climbed to 5.02% in 2023 and 5.33% in 2024. These higher interest rates have not yet appeared to dampen the local housing market's growth.
Looking ahead, predictive models suggest that Plainfield's housing market will continue to experience growth over the next five years. Average home prices are projected to increase by approximately 3-5% annually, potentially reaching around $240,000 by 2029. Average rent prices are expected to follow a similar trajectory, with annual increases of 2-4%, potentially reaching $750-$800 per month by 2029. However, these projections assume stable economic conditions and no major disruptions to the local market.
In summary, Plainfield, Iowa has demonstrated a strong trend towards homeownership, with 90% of residents owning their homes as of 2022. This shift has occurred alongside significant increases in both average home prices and average rent. The city's housing market has shown resilience, continuing to grow even in the face of rising interest rates. As Plainfield moves forward, it appears poised for continued growth in its housing sector, with both homeowners and the remaining renters likely to see increasing property values and rents in the coming years.
