The relationship between federal interest rates and homeownership rates in Searchlight appears to follow established trends to some extent. For instance, the period of low interest rates from 2013 to 2016 (ranging from 0.09% to 0.4%) coincided with an increase in homeownership from 67% to 74%. However, the highest homeownership rate of 79% in 2017 occurred as interest rates began to rise, suggesting that local factors may have played a more significant role in homeownership decisions during this time.

The rental market in Searchlight has shown an inverse relationship with homeownership rates. As homeownership declined from 79% in 2017 to 62% in 2022, the percentage of renters increased from 21% to 37%. This shift occurred alongside fluctuations in average rent prices, which, despite some volatility, showed an overall decreasing trend from $840 in 2017 to $546 in 2022.

In 2023, the average home price in Searchlight was $227,529, with federal interest rates at 5.02%. Moving into 2024, the average home price increased slightly to $230,788, while interest rates rose to 5.33%. This upward trend in both home prices and interest rates suggests a potentially challenging environment for prospective homebuyers in the near term.

Looking ahead, predictive models forecast a continued modest increase in average home prices over the next five years, potentially reaching around $245,000 by 2029. Average rent prices are expected to stabilize and potentially show a slight upward trend, possibly reaching $600 by 2029, assuming economic conditions remain relatively stable.

In summary, Searchlight has experienced significant fluctuations in homeownership rates and average rent prices over the past decade. The interplay between these factors, along with changes in federal interest rates, has shaped the local real estate market. As the community moves forward, it is likely to see a gradual increase in both home prices and rent, with homeownership rates potentially stabilizing or slightly decreasing if current trends persist.