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Rising Home Values and Ownership: Sioux City's Evolving Housing Market Along the Missouri River
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
Sioux City, Iowa, situated along the Missouri River, is a vibrant community known for its rich history and economic significance in the region. Over the past decade, this city has experienced notable shifts in homeownership rates and housing market dynamics. The overall trend shows an increase in homeownership, rising average home prices, and fluctuating average rent prices.
Homeownership in Sioux City has shown a generally upward trend, with some fluctuations. In 2013, the homeownership rate was 66%, which dipped to 59% in 2014 before steadily climbing to 71% by 2021. This increase in homeownership coincided with a substantial rise in average home prices. In 2013, the average home price was $91,111, which steadily increased to $156,105 by 2021, representing a 71% increase over eight years. This trend suggests that despite rising prices, more residents were able to enter the housing market, possibly due to favorable economic conditions or increased local investment.
The relationship between federal interest rates and homeownership rates in Sioux City aligns with well-established trends. From 2013 to 2021, interest rates remained historically low, hovering between 0.08% and 1.83%. This period of low interest rates coincided with the overall increase in homeownership rates, from 66% to 71%. Lower interest rates typically make mortgages more affordable, encouraging home buying. The slight dip in homeownership to 64% in 2022 occurred as interest rates rose to 1.68%, potentially making home purchases less affordable for some buyers.
Renter percentages in Sioux City have generally decreased as homeownership increased. In 2013, 34% of residents were renters, which peaked at 41% in 2014 before gradually declining to 29% by 2021. Average rent prices, however, showed an upward trend. In 2013, the average rent was $661, which increased to $830 by 2021, a 25.6% rise. This trend suggests that while fewer residents were renting, those who did rent faced higher costs. The city's population growth from 81,325 in 2013 to 86,369 in 2021 may have contributed to increased demand for rental properties, driving up prices despite a lower percentage of renters.
In 2023 and 2024, Sioux City's housing market continued to evolve. The average home price reached $179,262 in 2023 and further increased to $185,518 in 2024, representing a 3.5% year-over-year growth. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, potentially impacting affordability and homeownership rates.
Looking ahead, predictive models suggest that average home prices in Sioux City may continue to rise over the next five years, albeit at a potentially slower rate due to higher interest rates. Average home prices could reach approximately $210,000 by 2029. Average rent prices are also expected to increase, potentially reaching around $1,050 by 2029, assuming a continuation of current trends and economic conditions.
In summary, Sioux City has experienced a notable increase in homeownership rates and average home prices over the past decade, despite rising costs. The rental market has seen fewer renters but higher average rents. These trends reflect a dynamic housing market influenced by population growth, economic factors, and changing interest rates. As the city continues to evolve, balancing affordability with growth will likely remain a key consideration for both homeowners and renters in Sioux City.
