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Rising Home Values and High Ownership Rates in Philpot, Kentucky: A Decade of Housing Market Resilience
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
Philpot, located in Kentucky, is a small community with a rich history and a dynamic real estate market. Over the past decade, this area has experienced notable shifts in homeownership rates and housing prices, reflecting broader economic trends and local market conditions.
The homeownership rate in Philpot has remained consistently high, though with some fluctuations. In 2013, 93% of residents owned their homes, and this figure peaked at 95% in 2016. However, there was a slight decline to 89% by 2019, before stabilizing at 90% from 2020 to 2022. This high rate of homeownership coincides with a steady increase in average home prices. The average home price rose from $130,672 in 2010 to $211,858 in 2022, representing a significant 62% increase over 12 years.
The relationship between federal interest rates and homeownership rates in Philpot follows a typical pattern. When interest rates were at historic lows between 2010 and 2016 (ranging from 0.1% to 0.4%), homeownership rates remained high, peaking at 95% in 2016. As interest rates began to rise from 2017 onwards, there was a slight decrease in homeownership, though it remained relatively stable around 90%.
Renter percentages in Philpot have been consistently low, mirroring the high homeownership rates. The renter population increased slightly from 7% in 2013 to 11% in 2019, before settling at 10% from 2020 to 2022. Average rent prices have shown some volatility, rising from $835 in 2013 to a peak of $950 in 2017, before declining to $823 in 2022. This trend suggests that despite the low percentage of renters, there has been some pressure on rental prices, possibly due to limited rental inventory in a predominantly owner-occupied market.
In 2023 and 2024, Philpot continued to see growth in average home prices. The average home price reached $222,631 in 2023 and further increased to $229,291 in 2024. This represents a 5.1% increase from 2022 to 2023, and a 3% increase from 2023 to 2024. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, marking a substantial increase from the low rates of the previous decade.
Looking ahead, based on the historical trends and current market conditions, we can expect average home prices in Philpot to continue their upward trajectory, albeit at a potentially slower pace due to higher interest rates. A conservative estimate suggests average home prices could reach around $250,000 to $260,000 by 2029. Rent prices, which have shown more volatility, may stabilize or see modest increases, potentially reaching an average of $850 to $900 per month in the next five years.
In summary, Philpot has maintained a strong homeownership market with steadily increasing home values over the past decade. Despite recent increases in interest rates, the area's high homeownership rate and rising home prices indicate a robust and desirable housing market. The rental market, while smaller, has shown resilience with relatively stable prices. These trends suggest Philpot remains an attractive location for homeowners, with potential for continued growth in property values in the coming years.
