Loading Content...
Rising Home Values and Stable Ownership in Huntsville, Arkansas: A Decade of Real Estate Resilience
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Huntsville, Arkansas, a city of 4,606 residents as of 2022, is situated in the Ozark Mountains. This small but growing community has experienced significant changes in its housing market over the past decade. The city's housing landscape has been characterized by stable homeownership rates and rising property values, reflecting both broader economic trends and local dynamics. The homeownership rate in Huntsville has remained relatively constant, fluctuating around 60% between 2013 and 2022. In 2013, the homeownership rate was 59%, and by 2022, it had reached 60%. During this same period, average home prices in Huntsville demonstrated a consistent upward trend. The average home price in 2013 was $105,840, which increased steadily to $219,323 by 2022, representing a substantial 107% increase over nine years.
The relationship between federal interest rates and homeownership rates in Huntsville generally follows an inverse pattern. For example, in 2013, when interest rates were low at 0.11%, the homeownership rate was 59%. As interest rates gradually increased, reaching 1.83% in 2018, the homeownership rate slightly increased to 63%. However, this trend was not always consistent, as evidenced in 2020 when interest rates dropped to 0.38%, yet homeownership remained stable at 59%.
Renter percentages and average rent prices in Huntsville have shown notable trends. The renter-occupied percentage fluctuated between 37% and 42% from 2013 to 2022. Average rent prices increased from $537 in 2013 to $729 in 2018, a 36% increase. However, there was a significant drop to $613 in 2019, followed by a recovery to $664 in 2022. These fluctuations may be attributed to changes in the local economy and housing supply.
In 2023 and 2024, Huntsville's housing market continued to evolve. The average home price reached $223,002 in 2023 and further increased to $229,232 in 2024, showing steady appreciation. Concurrently, federal interest rates rose significantly, reaching 5.02% in 2023 and 5.33% in 2024, which could potentially impact future homeownership rates and housing affordability in the city.
Looking ahead, based on historical trends and current market conditions, we can forecast potential 5-year trends for Huntsville's housing market. Average home prices are likely to continue their upward trajectory, potentially reaching around $275,000 by 2029, assuming a moderate annual growth rate of 3-4%. Average rent prices may also see an increase, potentially reaching $800-$850 per month by 2029, factoring in historical growth patterns and inflation.
In summary, Huntsville's housing market has demonstrated resilience and growth over the past decade. The city has maintained a stable homeownership rate while experiencing significant appreciation in average home values. Despite some fluctuations, rental prices have also shown an overall upward trend. The interplay between federal interest rates, local economic conditions, and housing supply will continue to shape Huntsville's real estate landscape in the coming years.
