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Southern Hills: Rising Home Values and Ownership Rates Amid Interest Rate Fluctuations
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
Southern Hills, a neighborhood in Lincoln, Nebraska, has experienced significant changes in homeownership rates and housing prices over the past decade. The area has seen a notable increase in homeownership, coupled with a steady rise in average home prices and average rent costs.
The trend in homeownership in Southern Hills has been remarkably positive. In 2013, the homeownership rate stood at 66%. This figure remained relatively stable until 2019, with minor fluctuations. However, a significant shift occurred in 2020, with homeownership jumping to 81%. This upward trend continued, reaching 84% by 2022. Concurrently, average home prices in the neighborhood have shown a consistent upward trajectory. In 2013, the average home price was $196,788. By 2022, this figure had risen dramatically to $341,645, representing a 73.6% increase over nine years.
The relationship between federal interest rates and homeownership rates in Southern Hills is noteworthy. From 2013 to 2019, when interest rates were relatively low (ranging from 0.09% to 2.16%), homeownership rates remained stable around 66-67%. However, the dramatic increase in homeownership to 81% in 2020 coincided with a sharp drop in interest rates to 0.38%. This trend continued into 2021 and 2022, with homeownership reaching 84% while interest rates remained low at 0.08% and 1.68% respectively.
Conversely, the percentage of renters in Southern Hills has decreased significantly. In 2013, renters made up 34% of the neighborhood's residents. This percentage remained relatively stable until 2019. However, by 2020, the renter population had dropped to 19%, and further decreased to 16% by 2022. Despite this decline in renter population, average rent prices have shown an overall upward trend. In 2013, the average rent was $964. By 2022, it had increased to $1,073, representing an 11.3% rise over nine years. It's worth noting that the population of Southern Hills decreased from 4,242 in 2013 to 3,713 in 2022, which may have influenced these housing dynamics.
As of 2024, the average home price in Southern Hills has reached $354,370, showing continued growth from the 2022 figure. This increase has occurred despite the federal interest rate rising to 5.33% in 2024, suggesting strong demand in the local housing market even in the face of higher borrowing costs.
Looking ahead, based on the observed trends, we can predict that average home prices in Southern Hills will continue to rise over the next five years, albeit potentially at a slower rate due to higher interest rates. Average rent prices are also likely to increase, but at a more moderate pace, influenced by the high homeownership rate in the neighborhood.
In summary, Southern Hills has experienced a significant shift towards homeownership, with rates increasing from 66% to 84% between 2013 and 2022. This change has been accompanied by substantial growth in average home prices and a more modest increase in average rent costs. The neighborhood's housing market has shown resilience, with prices continuing to rise even as interest rates have increased in recent years.
