Cedar Rapids, IA Federal Housing Finance Agency Home Price Index (FHFA HPI)

The Cedar Rapids, IA, Federal Housing Finance Agency (FHFA) House Price Index (HPI) is a weighted, repeat-sales index that measures average price changes in repeat sales or refinancings on the same properties. The index was created in order to be a more accurate measure of house price changes than other indices because it uses data on actual transactions rather than appraisals.

As of December 2020, the Cedar Rapids HPI was at 198.9, up from 196.4 in November 2020 and up from 190.8 in December 2019. This means that home prices in Cedar Rapids have increased by 3.5% over the past year and 8% since December 2019. The FHFA HPI is calculated using data from Freddie Mac and Fannie Mae's Home Purchase Contracts and Refinance Databases.

The increase in the Cedar Rapids HPI over the past year can largely be attributed to low interest rates and strong demand for housing as a result of population growth. According to the U.S Census Bureau, the population of Cedar Rapids grew by 1% between 2019 and 2020, reaching a total of 133,000 people. This population growth is likely due to people moving to Cedar Rapids for its affordable housing and strong job market. The unemployment rate in Cedar Rapids was just 2% in December 2020, well below the national average of 6%.

With interest rates remaining low and population growth continuing to drive demand for housing, it is likely that home prices will continue to rise in Cedar Rapids throughout 2021.