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Rising Home Values and Stable Ownership: South Sioux City's Resilient Housing Market Along the Missouri River
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
South Sioux City, Nebraska, a vibrant community along the Missouri River, is known for its strong agricultural ties and diverse economy. Over the past decade, the city has experienced notable shifts in homeownership rates and housing prices, reflecting broader economic trends and local market dynamics. The homeownership rate in South Sioux City showed a slight upward trend from 2013 to 2022, with some fluctuations. In 2013, 59% of residents owned their homes, increasing to 60% by 2022. During this period, average home prices in the city experienced significant growth. In 2013, the average home price was $108,999, steadily climbing to reach $188,619 by 2022, representing a substantial 73% increase over nine years. The relationship between federal interest rates and homeownership rates in South Sioux City follows a generally expected pattern. As interest rates remained low from 2013 to 2020, ranging from 0.09% to 0.38%, homeownership rates increased from 59% to 62%. This trend aligns with the notion that lower interest rates typically encourage homeownership due to more affordable financing options. However, it's worth noting that despite the interest rate spike to 1.68% in 2022, homeownership remained relatively stable at 60%.
Renter percentages in South Sioux City have shown a slight decline over the observed period, decreasing from 41% in 2013 to 40% in 2022. Interestingly, average rent prices have experienced some fluctuations. In 2013, the average rent was $829, which peaked at $865 in 2015 before gradually declining to $752 in 2022. This 9.3% decrease in average rent from 2013 to 2022 occurred despite the city's population growth from 15,570 to 15,768 during the same period, suggesting factors beyond population change influencing rental prices.
In 2023 and 2024, South Sioux City's housing market continued its upward trajectory. The average home price reached $202,353 in 2023 and further increased to $208,323 in 2024, marking a 10.4% rise from 2022 to 2024. Concurrently, federal interest rates climbed significantly, reaching 5.02% in 2023 and 5.33% in 2024, potentially impacting homebuying decisions in the city.
Looking ahead, predictive models suggest that average home prices in South Sioux City are likely to continue their upward trend over the next five years, potentially reaching around $240,000 by 2029. This projection is based on the consistent growth observed in the past decade. Average rent prices, which have shown more variability, may stabilize or see modest increases, potentially reaching about $800 per month by 2029, assuming economic conditions remain favorable and population growth continues.
In summary, South Sioux City has demonstrated resilience in its housing market, with steady growth in homeownership rates and significant appreciation in average home values. The inverse relationship between declining average rent prices and increasing home values presents an interesting dynamic, potentially making homeownership more attractive for long-term residents. As the city continues to evolve, these housing trends will play a crucial role in shaping its economic landscape and community development.
