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Rising Home Values and Ownership in Lebanon, Kansas: A Decade of Housing Market Evolution
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
Lebanon is a small city located in Kansas with a population of 528 as of 2022. The city has experienced fluctuations in homeownership rates and average home prices over the years, with a general trend towards increased homeownership and rising property values in recent times.
The homeownership rate in Lebanon has shown an overall upward trend, increasing from 69% in 2019 to 79% in 2022. This rise in homeownership coincides with a significant increase in average home prices. In 2016, the average home price in Lebanon was $58,477, which steadily rose to $86,844 by 2022, representing a 48.5% increase over six years. This trend suggests a growing demand for homeownership in the area, despite rising prices.
Federal interest rates have played a role in homeownership trends in Lebanon. From 2016 to 2022, interest rates fluctuated but remained relatively low, ranging from 0.4% to 1.68%. These low rates likely contributed to the increased homeownership rates observed during this period, as they made mortgages more affordable for potential buyers.
The rental market in Lebanon has shown some volatility in recent years. The percentage of renters decreased from 31% in 2019 to 21% in 2022. Average rent prices have fluctuated significantly, with notable increases in certain years. For example, the average rent rose from $278 in 2019 to $796 in 2020, and then to $1,314 in 2021. However, it dropped back to $278 in 2022. These fluctuations may be influenced by the small population size, where changes in a few rental properties can have a substantial impact on overall averages.
In 2023, the average home price in Lebanon decreased slightly to $84,672, while federal interest rates rose to 5.02%. Moving into 2024, the average home price has rebounded to $89,152, with interest rates further increasing to 5.33%. These higher interest rates may impact affordability and potentially slow down the pace of home price appreciation in the near future.
Looking ahead, based on the historical data and current trends, we can project that average home prices in Lebanon may continue to rise moderately over the next five years, potentially reaching around $100,000 by 2029. However, the rate of increase might slow down due to higher interest rates. As for rent prices, given their recent volatility, it's challenging to predict a clear trend. They may stabilize around $500-$600 per month, assuming no major economic shifts in the area.
In summary, Lebanon has seen a significant increase in homeownership rates and average home prices over the past decade. The rental market has been more volatile, with fluctuating prices and a decreasing proportion of renters. Recent increases in interest rates may moderate home price growth, but the overall trend suggests continued demand for homeownership in this small Kansas city.
