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Salina, Kansas: Home Values Rise Amidst Stable Ownership in Agricultural Hub
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
Salina, Kansas, a vibrant city located in the heart of America, has experienced notable shifts in its housing market over the past decade. With a population of 49,075 in 2022, this mid-sized city has seen interesting trends in homeownership rates, average home prices, and average rent prices.
The homeownership rate in Salina has remained relatively stable, fluctuating between 64% and 66% from 2013 to 2022. Meanwhile, average home prices have shown a consistent upward trend. In 2013, the average home price was $102,188, which steadily increased to $157,225 by 2022, representing a substantial 53.9% growth over nine years. This trend suggests that while homeownership rates have remained steady, the value of owned properties has significantly appreciated.
Federal interest rates have played a role in shaping homeownership trends in Salina. From 2013 to 2016, when interest rates were exceptionally low (ranging from 0.09% to 0.4%), homeownership rates remained stable at around 65%. As interest rates began to rise more significantly from 2017 onwards, there was a slight fluctuation in homeownership rates, but they generally remained within the 64-66% range. This stability in homeownership despite rising interest rates may indicate other local factors influencing housing decisions in Salina.
Renter percentages in Salina have mirrored the homeownership rates, remaining relatively constant between 34% and 36% from 2013 to 2022. Average rent prices, however, have shown more volatility. In 2013, the average rent was $864, which fluctuated over the years, reaching a peak of $916 in 2021 before decreasing to $834 in 2022. This represents a modest overall decrease of 3.5% from 2013 to 2022, despite the fluctuations in between. The stability in renter percentages coupled with the fluctuating rent prices suggests that Salina's rental market has remained competitive and responsive to local economic conditions.
Looking at more recent data, the average home price in Salina continued its upward trajectory, reaching $166,380 in 2023 and $168,189 in 2024. This represents a 7% increase from 2022 to 2024. Concurrently, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024. Despite these higher interest rates, which typically make mortgages more expensive, Salina's housing market has continued to appreciate, indicating strong local demand or other positive economic factors supporting home values.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in Salina will continue to rise, albeit potentially at a more moderate pace due to higher interest rates. By 2029, average home prices could reach approximately $190,000 to $200,000, assuming a continuation of current trends. For rent prices, the forecast suggests a potential stabilization or slight increase, with average rents potentially reaching $900 to $950 by 2029, reflecting both historical fluctuations and the overall upward pressure on housing costs.
In summary, Salina's housing market has demonstrated resilience and growth over the past decade. The stability in homeownership rates despite rising home values suggests a strong local economy and desirable living conditions. The rental market, while experiencing some price fluctuations, has maintained a consistent share of the housing market. With continued appreciation in home values and the potential for stabilizing rent prices, Salina appears poised for sustained growth in its housing sector, balancing opportunities for both homeowners and renters in the coming years.
