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Rising Home Values and Ownership Trends in Harrodsburg, Kentucky's Oldest City
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
Harrodsburg, Kentucky, a city steeped in history as the oldest permanent settlement west of the Allegheny Mountains, has experienced notable shifts in its housing market over the past decade. Located in Mercer County with zip code 40330, this charming city has seen fluctuations in homeownership rates and property values that reflect both local and national economic trends.
The homeownership rate in Harrodsburg has remained relatively stable, with slight fluctuations over the years. In 2013, the city boasted a 69% homeownership rate, which dipped to 64% in 2018 before rebounding to 68% in 2022. This resilience in homeownership is particularly noteworthy given the significant increase in average home prices during this period. The average home price in Harrodsburg rose from $102,824 in 2013 to $186,500 in 2022, representing an impressive 81.4% increase over nine years.
The relationship between federal interest rates and homeownership rates in Harrodsburg follows a well-established pattern. As interest rates remained historically low from 2013 to 2021, ranging from 0.08% to 1.83%, the city maintained a relatively high homeownership rate. This period of low interest rates likely contributed to the sustained demand for homeownership, as more affordable financing options were available to potential buyers.
Renter percentages in Harrodsburg have shown minimal fluctuation, ranging from 31% in 2013 to 32% in 2022, with a peak of 36% in 2018. Average rent prices have seen a steady increase, rising from $600 in 2013 to $617 in 2022, a modest 2.8% increase over nine years. This relatively slow growth in rent prices, compared to the substantial rise in home values, may have contributed to the stability in the renter population.
In 2023 and 2024, Harrodsburg's housing market continued its upward trajectory. The average home price reached $194,963 in 2023 and further increased to $204,416 in 2024, representing a 9.6% growth over two years. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, potentially impacting affordability for new homebuyers.
Looking ahead, predictive models suggest that Harrodsburg's housing market will likely continue its growth trend, albeit at a potentially slower pace due to higher interest rates. Over the next five years, average home prices are projected to increase by approximately 15-20%, potentially reaching around $240,000 by 2029. Average rent prices are expected to follow a similar trajectory, potentially rising to around $700 per month by 2029, representing a 13-15% increase from 2022 levels.
In summary, Harrodsburg's housing market has demonstrated remarkable resilience and growth over the past decade. The city has maintained a strong homeownership base despite significant increases in property values. The rental market has remained stable with modest price increases, potentially offering an attractive alternative for those unable to enter the increasingly expensive homeownership market. As Harrodsburg continues to evolve, its housing market is poised for continued growth, balancing the interests of both homeowners and renters in this historic Kentucky city.
