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Terril, Iowa: Small City Sees Doubling of Average Home Values Amid Homeownership Surge
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
Terril, a small city in Iowa, has experienced notable shifts in its housing market over the past decade. The city has seen a general trend towards increased homeownership, with fluctuations in average home prices and rent costs. This analysis will explore these trends and their relationships to provide insights into Terril's housing landscape. Homeownership in Terril has shown a strong upward trend, particularly in recent years. In 2013, the homeownership rate was 83%, which increased to 89% by 2022. This significant rise coincides with a substantial increase in average home prices. In 2017, the average home price in Terril was $68,819. By 2022, this figure had more than doubled to $151,797, representing a 120.6% increase over five years.
The relationship between federal interest rates and homeownership rates in Terril appears to follow the general trend of lower interest rates encouraging homeownership. For instance, as interest rates remained low from 2013 to 2016 (around 0.1%), homeownership rates in Terril remained relatively stable at around 80%. As interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, homeownership in Terril actually increased to 89%, suggesting other local factors may have influenced this trend.
Renter percentages in Terril have correspondingly decreased as homeownership increased. In 2013, 17% of residents were renters, which dropped to 11% by 2022. Despite this decrease in the renter population, average rent prices have shown an overall upward trend. The average rent price rose from $602 in 2013 to $769 in 2022, a 27.7% increase. This rise in rent prices, despite a decreasing renter population, could indicate a tightening rental market or improved quality of available rental properties.
Looking at the most recent data, the average home price in Terril continued to rise in 2023, reaching $158,961. This represents a 4.7% increase from 2022. In 2024, the average home price further increased to $163,652, a 3% rise from 2023. Interestingly, federal interest rates also saw a significant increase during this period, rising to 5.02% in 2023 and 5.33% in 2024. Despite these higher interest rates, home prices in Terril continued to appreciate, suggesting strong local demand or other favorable market conditions.
Applying predictive models to forecast 5-year trends, we can expect average home prices in Terril to continue their upward trajectory, albeit potentially at a slower rate due to higher interest rates. Based on the historical data and current trends, average home prices could potentially reach around $190,000 to $200,000 by 2029. Average rent prices are also likely to continue increasing, potentially reaching $850 to $900 per month in the same timeframe.
In summary, Terril has experienced a significant shift towards homeownership over the past decade, with a corresponding decrease in renters. Average home prices have more than doubled since 2017, while rent prices have also increased substantially. Despite rising interest rates, the housing market in Terril appears to remain strong, with continued price appreciation expected in the coming years. These trends suggest a robust local housing market with increasing property values, which could have implications for affordability and community demographics in the future.
