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Riverside, Iowa: Home Values Soar as Ownership Rates Rise Along the Iowa 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
Riverside, Iowa, a small city situated along the scenic Iowa River, has experienced significant changes in its housing market over the past decade. The city has seen remarkable shifts in homeownership rates and property values, reflecting broader economic trends and local developments.
From 2013 to 2022, Riverside witnessed a substantial increase in homeownership rates, rising from 61% to an impressive 83%. This growth in owner-occupied housing coincided with a significant appreciation in average home prices. In 2013, the average home price in Riverside was $177,659, and by 2022, it had climbed to $300,811, representing a 69% increase over nine years.
The trend of increasing homeownership rates in Riverside appears to have been influenced by federal interest rates. As interest rates remained low, particularly from 2013 to 2016 when they ranged from 0.11% to 0.4%, homeownership became more attractive due to more affordable mortgage options. This period saw a steady increase in homeownership, from 61% in 2013 to 71% in 2016. The continued low interest rates through 2021 (0.08%) likely contributed to the further rise in homeownership to 83% by 2022.
Conversely, the renter population in Riverside has decreased significantly, from 39% in 2013 to 17% in 2022. Despite this decline, average rent prices have shown some volatility. In 2013, the average rent was $880, peaking at $938 in 2014 before declining to $721 in 2016 and 2017. By 2022, the average rent had increased again to $882, nearly returning to its 2013 level. This fluctuation in rent prices, despite the decreasing renter population, might be attributed to changes in housing quality or local economic factors.
In 2023 and 2024, Riverside continued to see growth in average home prices, reaching $314,229 in 2023 and $323,944 in 2024. This represents a 7.7% increase from 2022 to 2024. Notably, federal interest rates also saw a significant rise during this period, reaching 5.02% in 2023 and 5.33% in 2024, which could potentially impact future homeownership trends.
Looking ahead, based on the historical data and current trends, we can project that average home prices in Riverside may continue to rise over the next five years, potentially reaching around $360,000 by 2029. However, the rate of increase might slow down due to the higher interest rates. Average rent prices could stabilize or see modest increases, potentially reaching around $950 by 2029, assuming the current homeownership trend continues and demand for rentals remains relatively low.
In summary, Riverside has experienced a significant shift towards homeownership, accompanied by substantial appreciation in home values. The interplay between federal interest rates, local economic conditions, and housing market dynamics has shaped these trends. While homeownership has become increasingly prevalent, the rental market has shown resilience in maintaining relatively stable prices despite a shrinking renter population.
