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Rising Home Values and Stable Ownership in Union City, Indiana: 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
Union City, Indiana, is a small city located in Randolph County. With a population of 3,637 in 2022 and covering an area of 2.26 square miles, it offers a close-knit community atmosphere. Over the past decade, Union City has experienced fluctuations in homeownership rates and housing prices, reflecting broader economic trends and local market conditions.
The homeownership rate in Union City has shown relative stability, with a slight upward trend in recent years. In 2013, the homeownership rate was 64%, and by 2022, it had increased to 65%. This modest growth in homeownership coincided with a significant rise in average home prices. In 2011, the average home price was $49,877, and by 2022, it had more than doubled to $104,759, representing a 110% increase over 11 years.
Federal interest rates have played a role in shaping homeownership trends in Union City. The period from 2010 to 2016 saw historically low interest rates, ranging from 0.09% to 0.40%. This favorable financing environment likely contributed to the stability in homeownership rates during this time. As interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, the homeownership rate in Union City remained resilient, even showing a slight increase from 63% in 2017 to 65% in 2022.
Renter percentages in Union City have mirrored the homeownership trends, showing slight fluctuations over the years. In 2013, the renter-occupied rate was 36%, and it remained relatively stable, reaching 35% in 2022. Average rent prices, however, have shown more volatility. In 2013, the average rent was $555, which decreased to $464 in 2014. Rent prices then fluctuated over the years, reaching $470 in 2022. This represents a 15.3% decrease in average rent from 2013 to 2022, despite the city's population remaining relatively stable during this period.
In 2023 and 2024, Union City continued to see growth in average home prices. The average home price reached $109,753 in 2023 and further increased to $111,954 in 2024, representing a 6.9% rise from 2022 to 2024. This growth occurred despite a significant increase in federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024, potentially impacting affordability for some prospective homebuyers.
Looking ahead, based on the historical data and recent trends, we can project that average home prices in Union City may continue to rise over the next five years, albeit at a potentially slower rate due to higher interest rates. We might expect average home prices to reach approximately $125,000 to $130,000 by 2029. Average rent prices, which have shown more volatility, could stabilize or see modest increases, potentially reaching around $500 to $550 per month by 2029, assuming economic conditions remain relatively stable.
In summary, Union City has demonstrated resilience in its housing market over the past decade. The city has maintained a stable homeownership rate while experiencing significant growth in average home prices. Despite fluctuations in rent prices and rising interest rates, the local housing market has shown strength and potential for continued growth in the coming years.
