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Science Hill, Kentucky: Rising Home Values and Ownership Rates Amid Market Volatility
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
Science Hill, a small city in Kentucky covering 0.77 square miles, has experienced significant changes in its housing market and population dynamics over the past decade. The city has seen a general trend of increasing homeownership rates, rising average home prices, and fluctuating average rent prices. The homeownership rate in Science Hill has shown a steady increase over the years, climbing from 73% in 2017 to 83% in 2022. This upward trend in homeownership coincides with a substantial rise in average home prices. In 2010, the average home price in Science Hill was $50,487. By 2022, this figure had more than tripled to $171,184, representing a 239% increase over 12 years. The most dramatic annual increase occurred between 2019 and 2020, when average home prices jumped from $113,438 to $135,660, a 19.6% increase in a single year.
The relationship between federal interest rates and homeownership rates in Science Hill appears to follow the general economic principle that lower interest rates encourage homeownership. From 2010 to 2021, federal interest rates remained relatively low, ranging from 0.08% to 2.16%. During this period, homeownership rates in Science Hill increased from 73% in 2017 to 81% in 2021. However, as interest rates began to rise sharply in 2022 (1.68%) and 2023 (5.02%), the homeownership rate continued to increase to 83% in 2022, suggesting other local factors may also be influencing homeownership trends.
The percentage of renters in Science Hill has correspondingly decreased from 27% in 2017 to 17% in 2022. Average rent prices have shown considerable volatility during this period. In 2013, the average rent was $571, which decreased to $464 in 2017, before rising again to $583 in 2021, and then dropping to $535 in 2022. This fluctuation in rent prices, coupled with the decreasing percentage of renters, suggests a complex interplay of factors affecting the rental market in Science Hill.
Looking at the most recent data, the average home price in Science Hill reached $171,624 in 2023, showing a slight increase from 2022. However, in 2024, there has been a minor decrease to $169,715. This slight downturn coincides with the federal interest rate rising to 5.33% in 2024, potentially impacting home affordability and buyer demand.
Based on the historical trends and current data, we can project potential scenarios for the next five years. If the current patterns continue, we might expect average home prices in Science Hill to stabilize or experience modest growth, potentially reaching around $180,000 to $190,000 by 2029. Average rent prices could continue their volatile trend but may generally increase to keep pace with inflation and housing demand, potentially reaching $600 to $650 by 2029.
In summary, Science Hill has experienced a significant increase in homeownership rates and average home prices over the past decade, with a corresponding decrease in the percentage of renters. The city's housing market has shown resilience and growth, even in the face of recent interest rate increases. While rent prices have fluctuated, the overall trend suggests a strong preference for homeownership in this small Kentucky city. The coming years may see a stabilization of these trends as the market adjusts to current economic conditions.
