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Wheaton, Minnesota: Steady Homeownership Amidst Rising Home Values
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Wheaton, a small city in Minnesota, has experienced notable shifts in its housing landscape over the past decade. With a population of 1,353 in 2022 and covering an area of 1.74 square miles, this compact community has seen fluctuations in homeownership rates and housing prices that reflect broader economic trends.
The homeownership rate in Wheaton has shown a slight decline over the years, moving from 83% in 2013 to 77% in 2022. This gradual decrease coincides with an overall increase in average home prices. In 2013, the average home price in Wheaton was $74,633, which steadily rose to $105,386 by 2022, representing a significant 41% increase over this period.
Federal interest rates have played a role in shaping homeownership trends in Wheaton. As interest rates remained historically low from 2013 to 2021, ranging from 0.08% to 0.40%, it created favorable conditions for homebuyers. This period saw relatively stable homeownership rates, hovering around 80%. However, as interest rates began to rise in 2022 to 1.68%, we observed a slight dip in homeownership to 77%, suggesting a potential correlation between rising interest rates and decreasing homeownership.
The rental market in Wheaton has shown interesting trends as well. The percentage of renters increased from 17% in 2013 to 23% in 2022. During this period, average rent prices fluctuated but generally trended upward. In 2013, the average rent was $914, which decreased to $814 in 2016 before rising again to $872 in 2022. This represents a modest overall decrease of 4.6% from 2013 to 2022, despite the increase in the renter population.
Looking at the most recent data, 2023 saw average home prices in Wheaton reach $109,546, a 4% increase from 2022. Interestingly, in 2024, there's a slight decrease to $107,530, marking a 1.8% drop. This coincides with federal interest rates rising to 5.02% in 2023 and further to 5.33% in 2024, potentially influencing the slight cooling in the housing market.
Applying predictive models to forecast the next five years, we anticipate a continued but moderate increase in average home prices, potentially reaching around $120,000 by 2029. This projection takes into account the current slight downturn and the possibility of interest rates stabilizing or decreasing slightly. For rent prices, we expect a gradual increase, potentially reaching an average of $950 per month by 2029, assuming continued population stability and moderate economic growth in the area.
In summary, Wheaton has experienced a gradual shift towards a slightly higher proportion of renters, coupled with an overall increase in home values. The interplay between federal interest rates, homeownership rates, and housing prices has been evident, with recent higher interest rates potentially dampening the growth in home prices. The rental market has shown resilience, with rent prices remaining relatively stable despite an increasing renter population. These trends suggest a housing market that is evolving, balancing affordability with changing demographic preferences and economic conditions.
