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Rising Home Values and Stable Ownership in Marshall, Minnesota: A University Town's Housing Trends
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
Marshall, located in southwestern Minnesota, is a vibrant community known for its educational institutions, including Southwest Minnesota State University. The city has experienced a gradual shift in homeownership rates and housing prices over the past decade. From 2013 to 2022, Marshall saw a slight increase in homeownership, accompanied by a steady rise in average home prices and average rent costs.
The homeownership rate in Marshall showed a modest upward trend from 2013 to 2022. In 2013, 58% of residents owned their homes, and this figure increased to 61% by 2022. During this same period, average home prices in the city rose significantly. In 2013, the average home price was $146,506, and by 2022, it had climbed to $219,312, representing a substantial increase of 49.7% over nine years.
Federal interest rates have played a role in homeownership trends in Marshall. From 2013 to 2016, when interest rates were exceptionally low (ranging from 0.11% to 0.40%), homeownership remained stable at 58%. As interest rates began to rise more notably from 2017 onwards, reaching 1.68% in 2022, homeownership actually increased slightly to 61%. This suggests that other local factors, such as job market stability or housing availability, may have had a more significant influence on homeownership rates than interest rates alone.
Renter percentages in Marshall fluctuated slightly between 2013 and 2022, with a peak of 43% in 2019 before decreasing to 39% in 2022. Average rent prices showed a general upward trend during this period. In 2013, the average rent was $700, which increased to $810 by 2022, representing a 15.7% rise over nine years. This increase in rent prices, while significant, was less steep than the growth in home prices during the same period.
In 2023 and 2024, Marshall's housing market continued to evolve. The average home price reached $225,986 in 2023 and further increased to $227,414 in 2024, showing a continued upward trend. Concurrently, federal interest rates rose significantly to 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 the observed trends, it's projected that average home prices in Marshall will continue to rise over the next five years, albeit at a potentially slower rate due to higher interest rates. Average home prices could reach approximately $250,000 by 2029. Average rent prices are also expected to increase, potentially reaching around $900 per month in the same timeframe, assuming the current growth rate continues.
In summary, Marshall has experienced a gradual increase in homeownership rates from 2013 to 2022, despite rising home prices. The rental market has seen more moderate price increases compared to home values. The recent surge in interest rates may influence future homeownership trends and housing affordability in the city. As Marshall continues to grow and evolve, these housing market dynamics will play a crucial role in shaping the community's residential landscape.
