Loading Content...
Reading, Kansas: Rising Home Values and High Ownership Rates in a Small, Vibrant Community
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Reading, Kansas, is a small but vibrant community that has experienced notable shifts in its housing market over the past decade. Located in Lyon County, this city has seen fluctuations in homeownership rates and housing prices, reflecting broader economic trends and local dynamics. The overall trend shows an increasing preference for homeownership, coupled with rising average home prices and varying average rent rates.
The homeownership rate in Reading has shown a strong upward trend, increasing from 86% in 2013 to 89% in 2022. This rise in homeownership coincides with a significant increase in average home prices. In 2011, the average home price was $88,853, which steadily climbed to $216,850 by 2022, representing a remarkable 144% increase over 11 years. This correlation suggests that despite rising prices, residents of Reading have been increasingly inclined towards homeownership, possibly viewing real estate as a valuable long-term investment.
The relationship between federal interest rates and homeownership rates in Reading presents an interesting pattern. From 2013 to 2020, as interest rates remained relatively low, ranging from 0.09% to 1.83%, homeownership rates increased from 86% to 95%. This aligns with the general trend of lower interest rates encouraging homeownership due to more affordable financing options. However, it's noteworthy that even as interest rates began to rise more sharply in 2022 to 1.68%, Reading maintained a high homeownership rate of 89%, indicating other factors may also be influencing local housing preferences.
Conversely, the percentage of renters in Reading has decreased from 14% in 2013 to 11% in 2022. Despite this decline, average rent prices have shown considerable volatility. In 2013, the average rent was $675, which dropped to $475 in 2015 before rising sharply to $1,326 in 2022. This significant increase in rent prices, particularly from 2021 to 2022 where it jumped from $740 to $1,326, may have further incentivized homeownership in the city.
Looking at the most recent data, average home prices in Reading continued to rise, reaching $222,014 in 2023 and $228,210 in 2024. This represents a 2.3% increase from 2022 to 2023 and a further 2.8% increase from 2023 to 2024. Interestingly, these price increases occurred despite a significant rise in federal interest rates, which reached 5.02% in 2023 and 5.33% in 2024. This suggests a strong local housing market that has remained resilient in the face of higher borrowing costs.
Applying predictive models to forecast 5-year trends, it's anticipated that average home prices in Reading will continue to rise, albeit at a more moderate pace. Based on the historical data and current economic conditions, average home prices could potentially reach around $260,000 to $275,000 by 2029. Average rent prices are also expected to increase, possibly stabilizing around $1,500 to $1,600 per month. However, these predictions are subject to various economic factors and local market conditions.
In summary, Reading has demonstrated a strong trend towards homeownership, with a concurrent increase in average home prices. Despite rising interest rates and fluctuating rent prices, the local housing market has shown resilience and continued growth. The city's high homeownership rate, coupled with steadily increasing property values, suggests a stable and attractive real estate market for residents and potential investors alike.
