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Rising Home Values and Ownership Trends in Silver Grove, Kentucky: A Riverside Community's Housing Market 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
Silver Grove, Kentucky is a small city located along the Ohio River, known for its tight-knit community and proximity to larger urban areas. Over the past decade, the city has experienced fluctuations in homeownership rates and housing prices, reflecting broader economic trends and local market dynamics.
The homeownership rate in Silver Grove has shown a general upward trend from 2013 to 2022, with some fluctuations. In 2013, the homeownership rate was 63%, which increased to 74% by 2018. However, it slightly decreased to 67% by 2022. Concurrently, average home prices have seen a significant increase. In 2014, the average home price was $93,621, which rose steadily to $164,839 by 2022, representing a 76% increase over eight years. This trend suggests that despite rising home prices, homeownership remained relatively attractive in Silver Grove.
Federal interest rates have played a role in homeownership trends. From 2013 to 2016, when interest rates were exceptionally low (ranging from 0.11% to 0.40%), homeownership in Silver Grove increased from 63% to 64%. As interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), homeownership actually peaked at 74% in 2018, possibly due to residents rushing to buy before rates increased further. The slight decline in homeownership to 67% by 2022 coincided with interest rates jumping to 1.68%, potentially making mortgages less affordable for some residents.
Renter percentages in Silver Grove have generally decreased as homeownership increased, dropping from 37% in 2013 to 33% in 2022. Average rent prices, however, have shown volatility. In 2013, the average rent was $689, which increased to $891 by 2016, a 29% jump. Interestingly, rent then decreased to $683 in 2017 before rising again to $752 in 2022. These fluctuations may be influenced by changes in the local economy, housing supply, and the city's small population, which ranged from 1,440 to 1,619 during this period.
In 2023, the average home price in Silver Grove reached $169,673, the highest point in the available data, while federal interest rates climbed to 5.02%. Moving into 2024, we see a decrease in average home prices to $156,679, coinciding with a further increase in interest rates to 5.33%. This recent trend suggests that higher interest rates may be cooling the housing market in Silver Grove.
Looking ahead, based on historical trends and current economic conditions, we can predict that average home prices in Silver Grove may experience a period of stabilization or slight decline over the next five years due to higher interest rates. Rent prices, which have been more volatile, could see moderate increases as some potential homebuyers opt to rent instead. However, if interest rates begin to decrease, we might see a resurgence in home buying activity and prices.
In summary, Silver Grove has maintained a relatively high homeownership rate despite rising home prices over the past decade. The interplay between federal interest rates, home prices, and rent has shaped the city's housing market dynamics. Recent increases in interest rates appear to be cooling the housing market, which may lead to a period of adjustment in both home prices and rental rates in the coming years.
