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Rising Home Values and Stable Ownership in Niagara, Wisconsin: A Decade of Housing Market 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
Niagara, Wisconsin, a small urban area with a population of 2,144 as of 2022, has experienced notable changes in its housing market over the past decade. This analysis focuses on the fluctuations in homeownership rates, average home prices, and average rent prices from 2013 to 2022. The overall trend indicates a slight decrease in homeownership, accompanied by steady increases in both average home prices and average rent prices.
From 2013 to 2022, the homeownership rate in Niagara saw a slight decline, moving from 82% to 82%. During this same period, average home prices demonstrated a consistent upward trend. In 2013, the average home price was $84,953, which increased to $140,367 by 2022, representing a substantial growth of 65.2% over nine years. This inverse relationship between homeownership rates and average home prices suggests that rising property values may have made it more challenging for some residents to enter the housing market.
Federal interest rates have played a significant role in shaping homeownership trends in Niagara. In 2013, when interest rates were at a low 0.11%, the homeownership rate was 82%. As interest rates gradually increased to 1.68% by 2022, the homeownership rate remained stable at 82%. This stability in homeownership despite rising interest rates indicates a strong desire for homeownership among Niagara residents, even in the face of potentially higher borrowing costs.
Renter percentages in Niagara have shown a slight increase, moving from 18% in 2013 to 18% in 2022. Correspondingly, average rent prices have experienced a significant rise. In 2013, the average rent was $541, which increased to $770 by 2022, marking a 42.3% increase over nine years. This upward trend in both renter percentages and average rent prices suggests a growing demand for rental properties in the city, possibly driven by those unable to enter the homeownership market due to rising home prices.
Looking at the most recent data, the average home price in Niagara reached $149,021 in 2023 and further increased to $150,773 in 2024. This represents a continued upward trend in property values. Simultaneously, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, which may impact future homeownership rates and housing market dynamics.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in Niagara will continue to rise, potentially reaching around $175,000 by 2029. Average rent prices are also expected to increase, possibly surpassing $900 per month within the same timeframe. These projections are based on the consistent upward trends observed in both metrics over the past decade.
In summary, Niagara has experienced a slight decrease in homeownership rates, accompanied by significant increases in both average home prices and average rent prices. The stability in homeownership rates despite rising property values and interest rates indicates a resilient housing market. However, the growing renter population and rising rent prices suggest an increasing demand for rental properties. As the city moves forward, these trends are likely to shape its housing landscape, potentially influencing affordability and accessibility for both homeowners and renters.
