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Rising Home Values and Ownership in Prescott, Kansas: A Small Community's Housing Dynamics
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
Prescott, Kansas, is a small community that has experienced significant fluctuations in population and housing dynamics over the past decade. The city has shown a general trend of increasing homeownership rates, while average home prices have risen steadily. Average rent prices, on the other hand, have displayed more volatility.
Homeownership rates in Prescott have seen an overall increase from 2013 to 2022. In 2013, the homeownership rate was 80%, which rose to 85% by 2022. This upward trend coincided with a substantial increase in average home prices. In 2012, the average home price was $57,548, which more than doubled to $133,824 by 2022. This correlation suggests that as property values increased, more residents were motivated to invest in homeownership, possibly viewing it as a sound financial decision.
The relationship between federal interest rates and homeownership rates in Prescott shows some interesting patterns. Despite historically low interest rates from 2010 to 2021, ranging from 0.08% to 0.40%, homeownership rates remained relatively stable, fluctuating between 79% and 88%. This suggests that other local factors, such as employment opportunities or housing availability, may have played a more significant role in homeownership decisions than national interest rates.
Renter percentages in Prescott have generally decreased from 20% in 2013 to 15% in 2022. Interestingly, average rent prices have shown considerable volatility during this period. In 2013, the average rent was $770, which decreased to $504 by 2019, before rising again to $575 in 2022. This fluctuation in rent prices does not seem to have a clear correlation with the declining renter percentage, indicating that other factors, such as local economic conditions or housing supply, may have influenced renting patterns.
In 2023 and 2024, Prescott continued to see growth in average home prices. The average home price reached $136,358 in 2023 and further increased to $141,613 in 2024. This represents a 5.8% increase from 2022 to 2023 and another 3.8% increase from 2023 to 2024. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, potentially impacting homebuying decisions.
Looking ahead, based on the historical data and current trends, we can forecast that average home prices in Prescott are likely to continue their upward trajectory over the next five years. Assuming a conservative annual growth rate of 4%, we might expect average home prices to reach approximately $172,000 by 2029. Average rent prices, given their historical volatility, are more challenging to predict. However, if we assume a modest annual increase of 2%, average rents could potentially reach around $635 by 2029.
In summary, Prescott has experienced a notable increase in homeownership rates and average home prices over the past decade. The community has shown resilience in maintaining high homeownership rates despite fluctuations in population and economic conditions. The continued rise in home prices, coupled with recent increases in interest rates, may present both opportunities and challenges for future homeowners in this small Kansas city.
