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Rising Home Values and Ownership Trends in Madison, Nebraska: A Decade of Real Estate 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
Madison, Nebraska, is a small community that has experienced notable fluctuations in its population and housing market over the past decade. This analysis explores the trends in homeownership rates, average home prices, and average rent prices, providing insights into the local real estate dynamics.
The homeownership rate in Madison has shown variability, ranging from 65% to 77% between 2013 and 2022. This fluctuation correlates with changes in average home prices, which have seen a steady increase over the same period. In 2013, the average home price was $84,827, with a homeownership rate of 77%. By 2022, the average home price had risen to $172,167, while the homeownership rate slightly decreased to 74%.
Federal interest rates have played a role in shaping homeownership trends in Madison. From 2013 to 2016, when interest rates were at historic lows (0.11% to 0.40%), the homeownership rate remained relatively stable, ranging from 67% to 72%. As interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, the homeownership rate showed resilience, maintaining at 74% in 2022.
Renter percentages and average rent prices have also shown interesting trends. In 2013, the renter-occupied percentage was 23%, with an average rent of $609. As the renter percentage increased to 35% in 2018, the average rent also rose to $721. However, by 2022, the renter percentage had decreased to 26%, while the average rent continued to climb, reaching $823. This suggests that despite a lower proportion of renters, demand for rental properties remained strong, driving up average rents.
In 2023, the average home price in Madison reached $178,970, with federal interest rates at 5.02%. Moving into 2024, the average home price further increased to $182,101, while interest rates rose slightly to 5.33%. These figures indicate a continuing upward trend in both home prices and interest rates, potentially impacting affordability for prospective homebuyers.
Looking ahead, based on the observed trends, we can forecast that average home prices in Madison are likely to continue their upward trajectory over the next five years, potentially reaching around $220,000 by 2029. Average rent prices may also continue to rise, possibly surpassing $950 per month within the same timeframe. However, the rate of increase may slow down if interest rates remain high, potentially affecting overall housing demand.
In summary, Madison has experienced a general trend of increasing average home prices and rents, with some fluctuations in homeownership rates. The resilience of homeownership rates despite rising prices and interest rates suggests a strong local preference for homeownership. The rental market has also shown strength, with rising average rents even as the proportion of renters has decreased in recent years. These trends indicate a dynamic and evolving housing market in Madison, Nebraska.
