Russellville, Arkansas: Average Home Values and Ownership Trends in a River Valley City
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
DATA SOURCE
Russellville, a city in Arkansas known for its scenic beauty and as the home of Arkansas Tech University, has experienced notable shifts in homeownership rates and housing prices over the past decade, reflecting broader economic trends and local developments. The homeownership rate in Russellville has shown fluctuations over the years, with a general trend towards increased ownership. In 2013, 62% of residents owned their homes, which dipped to 56% by 2017. However, there has been a significant rebound since then, with homeownership reaching 64% in 2022. This upward trend coincides with changes in average home prices. In 2013, the average home price was $123,863, which steadily increased to $184,399 by 2022, representing a 48.9% increase over this period.
Federal interest rates have played a crucial role in shaping homeownership trends in Russellville. The period from 2013 to 2016 saw historically low interest rates, ranging from 0.09% to 0.4%. This likely contributed to the initial stability in homeownership rates. As interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), there was a temporary dip in homeownership. However, the sharp drop in interest rates in 2020 (0.38%) and 2021 (0.08%) coincided with a substantial increase in homeownership, reaching 65% in 2021, the highest in the observed period.
Renter percentages in Russellville have generally mirrored the inverse of homeownership trends. The renter population peaked at 44% in 2017, coinciding with the lowest homeownership rate. Since then, there has been a gradual decrease in renters, reaching 36% by 2022. Average rent prices have shown an overall upward trend, increasing from $740 in 2013 to $755 in 2022, with some fluctuations in between. The highest average rent was recorded in 2021 at $785, possibly reflecting increased demand as the population grew from 34,248 in 2010 to 35,503 in 2022.
In 2023, the average home price in Russellville rose to $192,651, a 4.5% increase from 2022, while interest rates climbed to 5.02%. The trend continues into 2024, with average home prices reaching $196,908 and interest rates further increasing to 5.33%. These figures indicate a continued appreciation in the housing market despite rising interest rates.
Looking ahead, predictive models suggest that average home prices in Russellville are likely to continue their upward trajectory over the next five years, potentially reaching around $220,000 by 2029. Rent prices are also expected to increase, albeit at a slower pace, potentially reaching an average of $820 per month in the same timeframe.
In summary, Russellville has experienced a notable increase in homeownership rates and average home prices over the past decade. The interplay between federal interest rates, local economic factors, and population growth has significantly influenced these trends. The recent uptick in both home prices and interest rates suggests a robust housing market, with predictions indicating continued growth in both the ownership and rental sectors in the coming years.
