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Rising Home Values and Declining Ownership: The Evolving Housing Landscape of Malone, Lincoln
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
Malone, a neighborhood in Lincoln, Nebraska, has experienced significant changes in its housing market over the past decade. This area has maintained a high proportion of renters while average home prices have shown a steady upward trend. The homeownership rate in Malone has fluctuated, with a general trend towards decreased ownership. In 2013, the homeownership rate was 17%, peaking at 22% in 2017 and 2018, before dropping to 16% by 2022. Concurrently, average home prices in the neighborhood have consistently increased. The average home price rose from $96,221 in 2013 to $187,467 in 2022, representing a substantial 94.8% increase over this period.
The relationship between federal interest rates and homeownership rates in Malone presents an interesting dynamic. Despite historically low interest rates between 2013 and 2021 (ranging from 0.08% to 1.83%), homeownership rates in the neighborhood remained relatively low, fluctuating between 16% and 22%. This suggests that factors beyond interest rates, such as local economic conditions or housing supply, may have a more significant influence on homeownership in this area.
Renter percentages in Malone have remained consistently high, ranging from 78% to 84% between 2013 and 2022. The average rent prices have shown considerable volatility during this period. In 2013, the average rent was $730, which increased dramatically to $1,515 by 2019, representing a 107.5% increase. However, there was a sharp decline in 2020, with average rent dropping to $675, followed by increases to $796 in 2021 and a slight decrease to $678 in 2022. These fluctuations in rent prices occurred against a backdrop of relatively stable population numbers, suggesting that other market factors were at play.
Looking at the most recent data, the average home price in Malone continued its upward trend, reaching $198,999 in 2023 and further increasing to $206,141 in 2024. This represents a 10% increase from 2022 to 2024. Simultaneously, federal interest rates rose significantly, reaching 5.02% in 2023 and 5.33% in 2024, potentially impacting homebuying affordability in the neighborhood.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in Malone will continue to rise, albeit at a potentially slower rate due to higher interest rates. By 2029, average home prices could reach approximately $240,000 to $250,000, assuming a moderate annual growth rate of 3-4%. For average rent prices, considering the recent volatility, we project a more stable increase, potentially reaching $800 to $850 per month by 2029, based on an estimated annual growth rate of 3-4%.
In summary, Malone has demonstrated a persistent trend of high renter occupancy and steadily increasing average home prices. The neighborhood has shown resilience in its housing market, with home values appreciating significantly despite fluctuations in homeownership rates. The recent sharp increase in interest rates may impact future homebuying trends, potentially leading to a continued high proportion of renters in the area. The volatility in rent prices and the consistent rise in home values suggest a dynamic and evolving housing market in Malone, warranting close observation in the coming years.
