Sherwood, Arkansas: Stable Homeownership Amidst Rising Home Values
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
DATA SOURCE
Sherwood, Arkansas, a vibrant city in Pulaski County, is known for its excellent quality of life and strong community spirit. Over the past decade, Sherwood has experienced steady growth in both population and housing market trends. The city has maintained a relatively stable homeownership rate, while average home prices and average rent prices have shown notable fluctuations.
The homeownership rate in Sherwood has remained relatively consistent, hovering around 69% from 2013 to 2022. During this period, average home prices in the city have shown a general upward trend. In 2013, the average home price was $160,004. This figure remained relatively stable until 2017, with only minor fluctuations. However, from 2018 onwards, there was a noticeable acceleration in price growth. The average home price increased from $165,530 in 2018 to $215,564 in 2022, representing a significant 30% rise over four years.
The relationship between federal interest rates and homeownership rates in Sherwood appears to follow established trends. From 2013 to 2015, when interest rates were at historic lows (0.11% to 0.13%), the homeownership rate remained steady at 69%. As interest rates began to rise from 2016 to 2019 (0.4% to 2.16%), there was a slight dip in homeownership to 67-68%. However, when interest rates dropped again in 2020 and 2021 (0.38% and 0.08% respectively), the homeownership rate returned to 69%, suggesting that lower interest rates did indeed encourage homeownership in Sherwood.
The renter population in Sherwood has shown small fluctuations over the years, ranging from 31% to 33% of the total population. Average rent prices have generally increased, albeit with some volatility. In 2013, the average rent was $1,033. It peaked at $1,116 in 2019, representing an 8% increase over six years. However, there was a slight decline in subsequent years, with the average rent settling at $1,045 in 2022. This trend suggests that while rent prices have generally increased, they have not risen as dramatically as home prices, potentially making renting a more attractive option for some residents.
In 2023 and 2024, Sherwood's housing market continued to evolve. The average home price reached $218,681 in 2023 and further increased to $220,974 in 2024, showing a continued upward trend. Interestingly, this occurred despite a significant rise in federal interest rates, which reached 5.02% in 2023 and 5.33% in 2024. This suggests a strong demand for housing in Sherwood, potentially driven by factors such as local economic growth or migration patterns.
Looking ahead, based on the current trends, it's projected that average home prices in Sherwood will continue to rise over the next five years, potentially reaching around $250,000 by 2029. However, the rate of increase may slow down due to the higher interest rates. Average rent prices are also expected to increase, but at a more moderate pace, potentially reaching around $1,200 by 2029. These projections assume continued economic stability and population growth in the area.
In summary, Sherwood has maintained a stable homeownership rate despite fluctuations in home prices and interest rates. The city has seen significant growth in average home prices, particularly since 2018, while rent prices have increased more moderately. The resilience of the housing market, even in the face of rising interest rates, suggests a strong underlying demand for housing in Sherwood. These trends indicate a dynamic and evolving housing market that continues to attract both homeowners and renters to this thriving Arkansas city.
