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Westport, Kentucky: Rising Home Values and Shifting Ownership Patterns
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
Westport, Kentucky is a small suburban community located along the Ohio River. This charming town has experienced fluctuating homeownership rates and housing prices over the past decade, reflecting broader economic trends and local market dynamics.
The homeownership rate in Westport has shown a slight downward trend from 2013 to 2022. In 2013, 80% of residents were homeowners, which increased to 88% in 2014. However, by 2022, the rate had decreased to 84%. This shift coincides with changes in average home prices, which have generally increased over time. In 2017, the average home price was $204,239, rising steadily to $285,202 by 2022, representing a substantial 39.6% increase over five years.
The relationship between federal interest rates and homeownership rates in Westport shows some correlation. As interest rates remained low from 2013 to 2016, hovering around 0.1%, homeownership rates were relatively high, peaking at 88% in 2014 and 2016. However, as interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, there was a slight decline in homeownership rates, dropping to 84% by 2022. This trend aligns with the general principle that lower interest rates tend to encourage homeownership due to more affordable financing options.
Renter percentages in Westport have shown a corresponding inverse relationship to homeownership rates. The percentage of renters increased from 12% in 2016 to 16% in 2022. Interestingly, average rent prices have fluctuated during this period. In 2013, the average rent was $1,500, which decreased to $1,124 in 2015 and remained stable until 2017. There was then a gradual increase to $1,285 in 2020, followed by a sharp decline to $853 in 2022. This significant drop in average rent prices, despite an increase in the renter population, suggests potential economic factors or changes in the local rental market.
Looking at the most recent data, the average home price in Westport continued to rise in 2023, reaching $294,190, and further increased to $296,842 in 2024. This represents a 4.1% increase from 2022 to 2024. Concurrently, federal interest rates have also risen significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homeownership trends and housing affordability in the area.
Applying predictive models to forecast 5-year trends, it's anticipated that average home prices in Westport will continue to rise, albeit at a potentially slower rate due to higher interest rates. By 2029, average home prices could reach approximately $330,000 to $350,000, assuming a conservative annual growth rate of 2-3%. Average rent prices may stabilize and gradually increase, potentially reaching $950 to $1,000 by 2029, reflecting a recovery from the 2022 drop and aligning with overall housing market trends.
In summary, Westport has experienced a slight decrease in homeownership rates alongside rising average home prices over the past decade. The inverse relationship between homeownership and rental rates, coupled with fluctuating rent prices, suggests a dynamic local housing market. Recent increases in both home prices and interest rates may shape future housing trends in this Kentucky community, potentially impacting affordability and homeownership opportunities for residents.
