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Rexburg, Idaho: Housing Market Dynamics in a College Town
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Rexburg, Idaho, a vibrant city in the eastern part of the state, has experienced significant demographic and housing market changes over the past decade. Known for being home to Brigham Young University-Idaho, Rexburg has seen a dynamic interplay between homeownership rates, average home prices, and average rent costs. The city has generally trended towards a higher percentage of renters, while average home prices have shown substantial growth, particularly in recent years.
The homeownership rate in Rexburg has fluctuated over the years, with a notable decline from 40% in 2021 to 29% in 2022. This shift coincided with a dramatic increase in average home prices, which rose from $354,300 in 2021 to $425,636 in 2022, representing a 20% jump. This inverse relationship between homeownership rates and average home prices suggests that rising property values may have priced out potential buyers, pushing more residents into the rental market.
Federal interest rates have played a significant role in shaping homeownership trends in Rexburg. The period from 2010 to 2021 saw historically low interest rates, ranging from 0.08% to 0.18%, which typically encourages homeownership. However, Rexburg's homeownership rate remained relatively stable during this time, hovering around 35-36%. This suggests that other factors, such as the transient student population, may have a stronger influence on homeownership in the city than interest rates alone.
The renter percentage in Rexburg has generally increased over the years, rising from 61% in 2013 to 71% in 2022. This trend aligns with the growth in average rent prices, which increased from $673 in 2013 to $769 in 2021. However, there was a notable drop in average rent to $654 in 2022, despite the renter percentage reaching its peak. This unexpected decrease in rent could be attributed to factors such as increased housing supply or changes in the local economy.
Looking at the most recent data, the average home price in Rexburg for 2023 was $409,216, showing a slight decrease from the 2022 peak. In 2024, the average home price further declined to $404,057. This cooling of the housing market coincides with a significant increase in federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024. These higher interest rates likely contribute to the moderation in home prices by making mortgages more expensive and reducing buyer demand.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in Rexburg may continue to stabilize or experience moderate growth, influenced by the current higher interest rate environment. Average rent prices are expected to gradually increase, driven by the high renter population and potential economic growth in the area. However, the rate of increase may be tempered by new housing developments and evolving local economic conditions.
In summary, Rexburg's housing market has demonstrated a clear shift towards a renter-majority population, with homeownership rates declining as average home prices surged. The recent cooling in the housing market, coupled with rising interest rates, suggests a potential period of stabilization. The city's unique characteristics, including its large student population, will likely continue to shape its housing dynamics, making Rexburg an interesting case study in the interplay between demographic shifts and housing market trends.
