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Topeka's Rising Home Values: Capital City's Housing Market Shows Resilience
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Topeka, the capital city of Kansas, is a vibrant community with a rich history and diverse economy. Located in the heart of the Midwest, Topeka has experienced notable shifts in its housing market over the past decade. The city has maintained a relatively stable homeownership rate, while average home prices and average rent prices have shown significant growth trends. The homeownership rate in Topeka has remained fairly consistent, with slight fluctuations between 2013 and 2022. In 2013, the homeownership rate stood at 55%, and by 2022, it had increased slightly to 58%. During this period, average home prices in Topeka demonstrated a steady upward trend. In 2013, the average home price was $104,392, and by 2022, it had risen to $162,917, representing a substantial 56% increase over nine years. This trend suggests that despite rising home prices, Topeka residents have maintained a strong inclination towards homeownership.
Federal interest rates have played a significant role in shaping homeownership trends in Topeka. From 2013 to 2016, interest rates remained exceptionally low, hovering between 0.09% and 0.40%. During this period, homeownership rates in Topeka fluctuated between 54% and 58%. As interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), homeownership rates in Topeka actually increased from 56% to 59%. This suggests that local factors in Topeka may have had a stronger influence on homeownership rates than national interest rate trends during this period.
Renter percentages in Topeka have shown minor fluctuations, complementing the homeownership trends. In 2013, 45% of Topeka residents were renters, and this percentage remained relatively stable, reaching 42% by 2022. Average rent prices, however, have seen a more pronounced increase. In 2013, the average rent was $674, and by 2022, it had risen to $893, marking a 32.5% increase over nine years. This upward trend in rent prices, coupled with a slight decrease in the percentage of renters, suggests that while rental costs have increased, Topeka has maintained a balance between homeowners and renters.
In 2023 and 2024, Topeka's housing market continued its upward trajectory. The average home price in 2023 reached $175,915, and in 2024, it further increased to $183,175. This represents a 12.3% increase from 2022 to 2024. Concurrently, federal interest rates rose significantly, reaching 5.02% in 2023 and 5.33% in 2024, potentially impacting homebuying decisions in the city.
Looking ahead, predictive models suggest that Topeka's housing market will continue to grow over the next five years. Average home prices are projected to increase by approximately 3-5% annually, potentially reaching around $220,000 by 2029. Average rent prices are expected to follow a similar trend, with annual increases of 2-4%, potentially reaching approximately $1,050 by 2029.
In summary, Topeka's housing market has demonstrated resilience and growth over the past decade. The city has maintained a stable balance between homeowners and renters, despite significant increases in both home prices and rent. The consistent homeownership rate, coupled with rising property values, reflects the city's economic stability and the enduring appeal of homeownership among Topeka residents. As the market continues to evolve, Topeka appears well-positioned for sustained growth in its housing sector.
