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Rising Home Values and High Ownership Rates in Armada, Michigan: A Stable 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
Armada, located in Michigan, is a small community with a rich history and a population that has remained relatively stable over the past decade. The village has consistently maintained a high rate of homeownership, with average home prices showing a steady upward trend. Meanwhile, average rent prices have fluctuated but generally increased over time.
The homeownership rate in Armada has remained impressively high, ranging from 84% to 90% between 2013 and 2022. This strong preference for homeownership coincides with a significant increase in average home prices. In 2010, the average home price was $138,151, which grew steadily to reach $317,730 by 2022, representing a 130% increase over 12 years. The peak of homeownership was observed in 2021 at 90%, corresponding with an average home price of $296,208. This trend suggests that despite rising home prices, residents of Armada have continued to prioritize homeownership.
The federal interest rates have played a role in shaping homeownership trends in Armada. From 2010 to 2015, interest rates remained exceptionally low, hovering between 0.09% and 0.18%. During this period, homeownership rates in Armada were at their highest, reaching 89% in 2013. As interest rates began to rise gradually from 2016 onwards, there was a slight dip in homeownership, dropping to 84% in 2015. However, the community's strong preference for homeownership prevailed, with rates rebounding to 88% by 2022 despite higher interest rates.
The rental market in Armada, while smaller, has shown interesting trends. The percentage of renters fluctuated between 10% and 16% from 2013 to 2022. Average rent prices have generally increased, albeit with some volatility. In 2013, the average rent was $971, which decreased to $866 in 2016 before rising again to $1,083 in 2021. Interestingly, 2022 saw a slight decrease in average rent to $939, coinciding with a minor increase in the renter population from 10% to 12%. These fluctuations may be attributed to changes in population density and economic factors affecting the local rental market.
In 2023 and 2024, Armada experienced continued growth in average home prices. The average home price reached $330,443 in 2023 and further increased to $340,969 in 2024. This upward trend occurred despite a significant rise in federal interest rates, which stood at 5.02% in 2023 and 5.33% in 2024. These figures indicate a robust housing market in Armada, with home values appreciating even in the face of higher borrowing costs.
Looking ahead, based on historical trends and current market conditions, it's projected that average home prices in Armada will continue to rise over the next five years, albeit at a potentially slower rate due to higher interest rates. Average home prices could potentially reach around $380,000 to $400,000 by 2029. Average rent prices are also expected to increase, potentially reaching $1,200 to $1,300 per month by 2029, assuming continued demand for rental properties in the area.
In summary, Armada demonstrates a strong culture of homeownership, with residents showing resilience in maintaining high ownership rates despite rising home prices. The community has experienced significant appreciation in property values over the past decade, a trend that is expected to continue, albeit potentially at a more moderate pace. The rental market, while smaller, has shown growth and is likely to continue evolving to meet the needs of the local population.
