Loading Content...
Rushford's Rising Home Values: A Decade of Growth in a Small Minnesota Community
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Rushford, located in Minnesota, is a small community that has experienced notable shifts in its housing landscape over the past decade. The city has seen fluctuations in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market conditions. From 2010 to 2022, Rushford witnessed an overall increase in homeownership, rising average home prices, and fluctuating average rent prices.
Between 2013 and 2022, Rushford experienced a significant increase in homeownership rates. In 2013, the homeownership rate was 75%, which rose to 79% by 2022. This upward trend coincided with a substantial increase in average home prices. In 2013, the average home price was $112,034, which steadily climbed to $202,979 by 2022, representing an 81% increase over this period. The most notable jump occurred between 2020 and 2022, with average home prices rising from $155,872 to $202,979, a 30% increase in just two years.
The relationship between federal interest rates and homeownership rates in Rushford shows an interesting pattern. From 2013 to 2016, when interest rates were extremely low (ranging from 0.11% to 0.4%), homeownership rates remained stable at around 74-75%. As interest rates began to rise from 2017 (1%) to 2019 (2.16%), homeownership rates actually increased, reaching 82% by 2019. This trend suggests that factors beyond interest rates, such as local economic conditions or housing availability, may have played a significant role in driving homeownership in Rushford.
Regarding rental trends, the percentage of renters in Rushford decreased from 26% in 2014 to 19% in 2022. Despite this decline in the renter population, average rent prices showed an overall upward trend. In 2013, the average rent was $657, which fluctuated over the years but ultimately rose to $793 by 2022, a 21% increase. Interestingly, the population of Rushford decreased from 208 in 2014 to 170 in 2022, suggesting that the increase in average rent prices was not driven by population growth but potentially by other factors such as improved housing quality or regional economic trends.
In 2023 and 2024, Rushford continued to see growth in average home prices. The average home price reached $211,118 in 2023 and further increased to $218,486 in 2024, representing a 7.6% rise over these two years. 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 mortgage affordability.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in Rushford will continue to rise, albeit at a more moderate pace. By 2029, average home prices could reach approximately $250,000 to $270,000, assuming consistent economic conditions and local market factors. Average rent prices are also expected to increase, potentially reaching $900 to $950 by 2029, reflecting ongoing demand for rental properties despite the high homeownership rate.
The most important discoveries from this analysis include the strong positive correlation between rising homeownership rates and increasing average home prices in Rushford. Despite decreasing population, the city has maintained a robust housing market with steadily increasing property values. The resilience of homeownership rates in the face of rising interest rates suggests a strong local preference for homeownership. The rental market, while smaller, has shown consistent price growth, indicating sustained demand for rental properties even as the renter population decreased. Looking forward, Rushford's housing market is poised for continued growth in both average home prices and rent prices, reflecting the city's enduring appeal as a residential community.
