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Searcy, Arkansas: Rising Home Values and Stable Ownership in a University Town
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
Searcy, Arkansas, is a vibrant city located in the heart of the state. Known for its charming small-town atmosphere and home to Harding University, Searcy has experienced fluctuating trends in homeownership and housing prices over the past decade. The city has seen a general decline in homeownership rates, while average home prices and average rents have shown an upward trajectory.
The homeownership rate in Searcy has experienced a gradual decline from 2013 to 2022. In 2013, 60% of residents owned their homes, but by 2022, this figure had decreased to 58%. Interestingly, this decline in homeownership coincided with a steady increase in average home prices. In 2013, the average home price was $134,219, which rose to $182,813 by 2022, representing a substantial 36.2% increase over nine years.
Federal interest rates have played a significant role in shaping homeownership trends in Searcy. From 2013 to 2016, when interest rates were extremely low (ranging from 0.11% to 0.40%), homeownership rates remained relatively stable at around 60-61%. However, as interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, homeownership rates declined to 58%. This trend aligns with the general principle that lower interest rates tend to encourage homeownership due to more affordable financing options.
The rental market in Searcy has shown interesting dynamics in relation to the homeownership trends. As homeownership rates declined, the percentage of renters increased from 40% in 2013 to 42% in 2022. This shift coincided with a rise in average rent prices, which increased from $688 in 2013 to $733 in 2022, representing a 6.5% increase. It's worth noting that the population of Searcy remained relatively stable during this period, fluctuating between 29,768 and 31,857 residents.
Looking at the most recent data, the average home price in Searcy reached $196,988 in 2023 and further increased to $203,251 in 2024. This represents a significant jump of 11.2% from 2022 to 2024. Concurrently, federal interest rates have risen sharply, reaching 5.02% in 2023 and 5.33% in 2024, which may impact future homeownership rates and housing market dynamics.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in Searcy will continue to rise, potentially reaching around $235,000 by 2029. This projection is based on the consistent upward trend observed over the past decade. For average rent prices, we expect a more moderate increase, potentially reaching approximately $850 per month by 2029, assuming the current growth rate continues.
In summary, Searcy has experienced a gradual shift towards a higher proportion of renters, coupled with rising average home prices and rents. The interplay between federal interest rates, homeownership rates, and housing prices has been evident, with higher interest rates correlating with lower homeownership rates. As the city moves forward, it will be crucial to monitor these trends and their impact on the local housing market and community dynamics.
