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Somerset, Colorado: Rising Home Ownership Amidst Rural Charm
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Somerset, Colorado, is a small community nestled in the western part of the state. Over the past decade, this tight-knit area has experienced notable fluctuations in its homeownership rates and housing market dynamics, reflecting broader economic trends and local factors.
The homeownership rate in Somerset has shown a remarkable upward trend in recent years. In 2013, 83% of residents owned their homes, and this figure rose to an impressive 93% by 2022. This significant increase in homeownership coincided with changes in the local housing market and broader economic conditions. While specific average home prices for earlier years are not available, the trend suggests a growing preference for homeownership in the community.
Federal interest rates have played a crucial role in shaping homeownership trends in Somerset. The period from 2013 to 2021 saw historically low interest rates, ranging from 0.11% to 0.08%. These low rates likely contributed to the increasing homeownership rates observed during this time, as they made mortgage financing more affordable for potential buyers. The sharp rise in homeownership from 84% in 2020 to 91% in 2021, and further to 93% in 2022, aligns with the tail end of this low-interest-rate environment.
Conversely, the renter population in Somerset has decreased over time. In 2013, 16% of residents were renters, but by 2022, this had dropped to just 7%. The average rent prices have shown some volatility during this period. In 2013, the average rent was $1,220, which increased to $1,607 in 2015. However, it then fluctuated, dropping to $1,116 in 2017 before rising again to $2,050 in 2021. Interestingly, despite the decrease in the renter population, the average rent in 2022 was $1,120, lower than in previous years. This could be due to various factors, including changes in housing stock or local economic conditions.
In 2023 and 2024, Somerset's housing market has shown stability in average home prices. The average home price in 2023 was $508,337, with a slight decrease to $508,043 in 2024. This relative steadiness in home values occurs against the backdrop of higher federal interest rates, which stood at 5.02% in 2023 and increased to 5.33% in 2024. These higher interest rates may impact future homebuying decisions in the community.
Looking ahead to the next five years, several factors will likely influence Somerset's housing market. If the current trend of high homeownership rates continues, we might expect to see a continued upward pressure on average home prices, albeit potentially moderated by higher interest rates. Average rent prices may stabilize or increase slightly if the renter population remains low, as property owners may need to offer competitive rates to attract tenants in a predominantly owner-occupied market.
In summary, Somerset has experienced a significant shift towards homeownership over the past decade, with rates increasing from 83% to 93% between 2013 and 2022. This trend has occurred alongside fluctuations in average rent prices and a decreasing renter population. The stability in recent average home prices, coupled with rising interest rates, suggests a potentially evolving market dynamic in the coming years. These trends reflect the unique character of Somerset and its response to broader economic factors, painting a picture of a community with a strong preference for homeownership.
