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Rising Home Values and High Ownership Rates: Benton, Kansas' Resilient Housing Market
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
Benton, Kansas, is a small community located in Butler County. With a population of 1,931 in 2022, this city has experienced interesting fluctuations in its housing market and demographic composition over the past decade. The city has maintained a consistently high rate of homeownership, while average home prices have shown a steady upward trend. Average rent prices, on the other hand, have exhibited more volatility.
The homeownership rate in Benton has remained relatively stable, hovering around 87-89% between 2013 and 2022. This high rate of owner-occupied housing coincides with a significant increase in average home prices. In 2011, the average home price was $158,399, which steadily rose to $312,258 by 2022, representing a substantial 97% increase over 11 years. This trend suggests a strong correlation between the city's high homeownership rate and the appreciation of property values.
Federal interest rates have played a role in shaping homeownership trends in Benton. During periods of low interest rates, such as from 2013 to 2016 when rates were below 0.5%, the city saw its highest homeownership rates, peaking at 89% in 2016. As interest rates began to rise from 2017 onwards, there was a slight decrease in homeownership, settling at 87% by 2022. This aligns with the general trend of lower interest rates encouraging homeownership due to more affordable financing options.
The rental market in Benton has shown more variability. The percentage of renters decreased from 21% in 2013 to 13% in 2022. Interestingly, average rent prices have not followed a consistent pattern. In 2013, the average rent was $1,285, which increased to $1,586 in 2015. However, there was a significant drop to $878 in 2016, followed by fluctuations in subsequent years. By 2022, the average rent stood at $909, lower than the 2013 level despite the overall increase in property values. This inconsistency might be attributed to the small rental market size and the city's changing population dynamics.
Looking at the most recent data, the average home price in Benton continued its upward trajectory, reaching $324,031 in 2023 and further increasing to $334,313 in 2024. This represents a 7% increase from 2022 to 2024. Concurrently, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024, which may impact future homeownership rates and housing market dynamics.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in Benton will continue to rise, potentially reaching around $400,000 by 2029. This projection is based on the consistent upward trend observed over the past decade. For average rent prices, the forecast is less certain due to past volatility. However, if the recent stabilization continues, we might see average rents gradually increase to around $1,100-$1,200 per month by 2029.
In summary, Benton's housing market is characterized by high homeownership rates and steadily increasing property values. The rental market, while smaller, has shown more variability in both occupancy rates and prices. The city's ability to maintain high homeownership despite rising home prices suggests a strong local economy and desirable living conditions. However, the recent sharp increase in interest rates may present new challenges for potential homebuyers in the coming years.
