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Rising Home Values and Declining Ownership: Waukee's Housing Market Transformation
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
Waukee, a rapidly growing city in Iowa, has experienced significant changes in its housing market over the past decade. Located in Dallas County, Waukee is known for its excellent schools and thriving community. The city has seen a general trend of decreasing homeownership rates, while average home prices and average rent prices have shown an upward trajectory.
The homeownership rate in Waukee has declined from 85% in 2013 to 75% in 2022. During this same period, average home prices have risen substantially. In 2013, the average home price was $213,201, and by 2022, it had increased to $334,753, representing a 57% increase over nine years. This inverse relationship between homeownership rates and average home prices suggests that rising property values may be making homeownership less attainable for some residents.
Federal interest rates have played a role in shaping homeownership trends in Waukee. From 2013 to 2016, interest rates remained low, hovering around 0.1% to 0.4%. During this period, homeownership rates remained relatively stable, ranging from 85% to 77%. However, as interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), homeownership rates continued to decline, reaching 74% in 2019. This trend aligns with the general principle that higher interest rates can make mortgages less affordable, potentially discouraging homeownership.
As homeownership rates decreased, the percentage of renters in Waukee increased from 14% in 2013 to 25% in 2022. Concurrently, average rent prices also rose, albeit with some fluctuations. In 2013, the average rent was $734, and by 2022, it had increased to $938, representing a 28% increase. The city's population growth, from 18,819 in 2013 to 28,074 in 2022, likely contributed to the increased demand for rental properties and the subsequent rise in rent prices.
In 2023, the average home price in Waukee reached $340,746, and in 2024, it further increased to $343,559. This continued upward trend in home prices coincides with a significant rise in federal interest rates, which stood at 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact affordability and potentially influence future homeownership rates in the city.
Looking ahead, based on the historical data and current trends, it's projected that average home prices in Waukee will continue to rise over the next five years, potentially reaching around $380,000 by 2029. Average rent prices are also expected to increase, possibly surpassing $1,100 per month within the same timeframe. These projections assume a continuation of the city's population growth and economic development.
In summary, Waukee has experienced a shift towards more renters and fewer homeowners over the past decade, coinciding with substantial increases in both average home prices and average rent prices. The interplay between federal interest rates, population growth, and housing market dynamics has shaped these trends. As Waukee continues to grow, it will be important to monitor how these housing market trends evolve and impact the city's residents.
