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Rising Home Values and Ownership in Twin Falls, Idaho: A Decade of Growth
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
Twin Falls, Idaho, a city in the Magic Valley region, has experienced significant changes in its housing market over the past decade. Known for its proximity to the Snake River Canyon, Twin Falls has seen a steady increase in homeownership rates, accompanied by notable fluctuations in average home prices and rent costs. The homeownership rate in Twin Falls has shown a consistent upward trend, rising from 63% in 2013 to 66% in 2022. This increase in homeownership coincided with a substantial rise in average home prices. In 2013, the average home price in Twin Falls was $136,797, which steadily climbed to reach $365,061 by 2022, representing a 167% increase over nine years. This trend suggests a strong correlation between rising home values and the growing preference for homeownership in the city.
Federal interest rates have played a significant role in shaping homeownership trends in Twin Falls. The period from 2013 to 2016 saw historically low interest rates, ranging from 0.11% to 0.40%, which likely contributed to the initial increase in homeownership from 63% to 64%. As interest rates began to rise more sharply from 2017 (1.00%) to 2019 (2.16%), homeownership continued to increase, reaching 65%. This trend suggests that despite rising interest rates, other factors such as local economic growth and housing market dynamics continued to support homeownership in Twin Falls.
The rental market in Twin Falls has experienced its own set of trends. The percentage of renters decreased from 37% in 2013 to 34% in 2022, inversely mirroring the rise in homeownership. Interestingly, despite this decrease in the renter population, average rent prices showed an overall upward trend. In 2013, the average rent was $964, which increased to $978 by 2022, peaking at $1,002 in 2018. This suggests that while fewer people are renting, the demand for rental properties remains strong, possibly due to factors such as population growth and changing demographics.
Looking at the most recent data, the average home price in Twin Falls for 2023 was $350,804, showing a slight decrease from the 2022 peak. This trend continued into 2024, with the average home price reaching $353,225. Concurrently, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homeownership trends and housing affordability in the city.
Applying predictive models to forecast the next five years, we can anticipate continued growth in average home prices, albeit at a more moderate pace than seen in the early 2020s. Average rent prices are likely to follow a similar trend, with steady increases reflecting the city's growing population and economic development. However, the rate of increase may be tempered by the higher interest rate environment and potential economic fluctuations.
In summary, Twin Falls has demonstrated a robust housing market characterized by increasing homeownership rates and rising property values. The interplay between federal interest rates, local economic factors, and population growth has shaped a dynamic real estate landscape. As the city continues to evolve, balancing affordability with growth will be crucial in maintaining its appeal to both homeowners and renters alike.
