Loading Content...
Rising Home Values and Shifting Ownership in Madison, Indiana's Historic Riverside City
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Madison, Indiana, a riverside city known for its historic downtown and picturesque architecture, has experienced notable shifts in its housing market over the past decade. The city, with a population of 16,911 in 2022, has seen fluctuations in homeownership rates and significant changes in average home and rent prices.
The homeownership rate in Madison has shown a gradual decline over the years. In 2013, 67% of residents owned their homes, but by 2022, this figure had decreased to 60%. Conversely, the average home prices have seen a substantial increase. In 2012, the average home price was $96,166, rising steadily to reach $201,466 by 2022, representing a remarkable 109% increase over this period.
The relationship between federal interest rates and homeownership rates in Madison follows a generally inverse pattern. As interest rates remained low from 2013 to 2016, hovering around 0.1% to 0.4%, homeownership rates remained relatively stable at around 63-64%. However, as interest rates began to rise from 2017 onwards, reaching 1.68% by 2022, homeownership rates declined to 60%. This trend aligns with the principle that lower interest rates typically encourage homeownership due to more affordable financing options.
The rental market in Madison has also experienced significant changes. The percentage of renters increased from 33% in 2013 to 40% in 2022. Average rent prices have shown fluctuations rather than a steady increase. In 2013, the average rent was $676, peaking at $774 in 2015 before declining to $661 in 2022. This trend suggests that while more residents are renting, the rental market has remained relatively competitive, possibly due to increased housing supply or economic factors affecting the local population.
Looking at the most recent data, the average home price in Madison continued its upward trajectory, reaching $212,561 in 2023 and further increasing to $219,864 in 2024. This represents a 9.1% increase from 2022 to 2024. Concurrently, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024, which may impact future homeownership trends.
Applying predictive models to forecast 5-year trends, we can anticipate continued growth in average home prices, potentially reaching around $250,000 by 2029 if current trends persist. However, this growth rate may slow down due to the higher interest rates. For rent prices, the forecast suggests a potential stabilization or slight increase, possibly reaching an average of $700-$750 per month by 2029, assuming economic conditions remain stable.
In summary, Madison, Indiana has witnessed a clear trend of declining homeownership rates coupled with rising average home prices over the past decade. The rental market has expanded, with more residents opting to rent, while average rent prices have remained relatively stable. The recent sharp increase in interest rates, combined with continually rising home prices, may further impact homeownership rates in the coming years, potentially favoring the rental market. These trends reflect broader economic shifts and changing housing preferences in this historic Indiana city.
