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Rising Home Values and Shifting Ownership in Greenleaf, Idaho: A Decade of 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
Greenleaf, Idaho, is a small but growing community located in Canyon County. With a population of 3,213 in 2022 and covering just 0.77 square miles, this compact city has experienced significant changes in its housing market over the past decade. The city has seen fluctuations in homeownership rates, alongside notable increases in both average home prices and average rent prices.
The relationship between homeownership rates and average home prices in Greenleaf reveals an interesting trend. In 2013, the city had a high homeownership rate of 78%, with an average home price of $114,986. As home prices steadily increased, reaching $229,197 by 2019, the homeownership rate decreased to 74%. This inverse relationship continued into 2022, with the homeownership rate further declining to 70% as average home prices surged to $422,216. This trend suggests that rising home prices may have made homeownership less accessible for some residents.
Federal interest rates have played a role in shaping homeownership trends in Greenleaf. The period from 2013 to 2016 saw historically low interest rates, ranging from 0.11% to 0.40%. During this time, homeownership rates remained relatively stable, hovering between 73% and 78%. However, as interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), homeownership rates showed a slight decline, dropping to 74% by 2019. This trend aligns with the general principle that lower interest rates tend to encourage homeownership due to more affordable financing options.
Renter percentages and average rent prices in Greenleaf have shown some correlation. In 2013, when the renter-occupied rate was 22%, the average rent was $717. As the renter population increased to 35% in 2016, average rent rose to $842. However, this relationship wasn't always consistent. By 2022, despite a slight decrease in the renter-occupied rate to 30%, average rent had increased to $750. These fluctuations may be influenced by factors such as housing supply and overall population growth, which saw an increase from 2,688 in 2013 to 3,213 in 2022.
Looking at the most recent data, 2023 saw a significant drop in average home prices to $388,756, down from $422,216 in 2022. This decline occurred despite a sharp increase in federal interest rates to 5.02% in 2023. The trend continues into 2024, with average home prices slightly recovering to $398,605, while interest rates further increased to 5.33%. These figures suggest a cooling housing market, possibly due to the higher borrowing costs associated with increased interest rates.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in Greenleaf may continue to experience moderate growth, albeit at a slower pace than the rapid increases seen in recent years. This prediction is based on the current cooling trend and higher interest rates. Average rent prices are expected to follow a similar pattern of modest growth, influenced by factors such as housing demand and overall economic conditions in the area.
In summary, Greenleaf has experienced significant changes in its housing market over the past decade. The inverse relationship between rising home prices and declining homeownership rates highlights the challenges of affordability in the area. The recent cooling of the housing market, as evidenced by the drop in average home prices in 2023 and 2024, suggests a potential shift in market dynamics. These trends, coupled with fluctuating rent prices and changing renter percentages, underscore the complex and evolving nature of Greenleaf's housing landscape.
