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Arrow Head Acres: Rising Home Values and Persistent Renter Dominance
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
Arrow Head Acres, a neighborhood in North Las Vegas, Nevada, has experienced significant changes in its housing market over the past decade. This urban area has maintained a predominantly renter-occupied status while witnessing substantial increases in property values. Homeownership rates in the neighborhood have fluctuated between 11% and 16% from 2013 to 2022, indicating a consistent preference for renting among residents. During this period, average home prices demonstrated a notable upward trend, while average rent prices saw more modest increases.
The interplay between homeownership rates and average home prices in Arrow Head Acres reveals an intriguing pattern. In 2013, when the homeownership rate was at its lowest point of 11%, the average home price stood at $55,399. As property values steadily climbed, reaching $292,539 in 2022, the homeownership rate also saw a slight increase to 15%. This suggests that despite the considerable rise in home prices, there was a small growth in the proportion of residents able to purchase homes. The most dramatic surge in average home prices occurred between 2017 and 2018, with values jumping from $129,670 to $167,512, representing a remarkable 29% increase in a single year.
Federal interest rates have played a significant role in shaping homeownership trends within Arrow Head Acres. The period from 2013 to 2016 was characterized by historically low interest rates, ranging from 0.09% to 0.4%. During this time, homeownership rates in the neighborhood increased from 11% to 16%, likely due to more affordable financing options available to potential buyers. However, as interest rates began to rise from 2017 onwards, eventually reaching 1.68% in 2022, homeownership rates stabilized around 15-16%. This stabilization suggests that higher borrowing costs may have deterred some prospective homeowners from entering the market.
Renter percentages and average rent prices in Arrow Head Acres have shown a relatively stable trend throughout the observed period. In 2013, 89% of the neighborhood's residents were renters, with an average rent of $796. By 2022, the renter percentage had decreased slightly to 85%, while the average rent had increased marginally to $800. The highest average rent was recorded in 2021 at $907, coinciding with a renter percentage of 87%. These figures indicate that despite minor fluctuations, Arrow Head Acres has maintained its character as a predominantly renter-occupied area with relatively affordable rent prices compared to the rising home values.
In recent years, Arrow Head Acres has experienced some fluctuations in its housing market. The average home price in 2023 was $292,357, showing a marginal decrease from 2022. However, in 2024, the average home price rose to $302,921, representing a 3.6% increase from the previous year. Concurrently, federal interest rates have continued to climb, reaching 5.02% in 2023 and 5.33% in 2024. These rising interest rates may have significant implications for homeownership trends in the coming years, potentially affecting the ability of residents to purchase homes.
Looking ahead, predictive models suggest that average home prices in Arrow Head Acres are likely to continue their upward trajectory over the next five years, albeit at a more moderate pace due to higher interest rates. Average rent prices are expected to follow a similar trend, with gradual increases to keep pace with inflation and housing demand. However, the rate of increase for rent prices is anticipated to be lower than that of home prices, potentially maintaining the neighborhood's appeal for renters.
In conclusion, Arrow Head Acres has demonstrated resilience in its housing market, characterized by steadily increasing property values and a slight growth in homeownership rates despite rising home prices. The neighborhood remains predominantly renter-occupied, with relatively stable rent prices. The ongoing interplay between federal interest rates, home prices, and rental market dynamics will continue to shape the housing landscape of Arrow Head Acres in the coming years, likely preserving its character as an accessible urban area for both renters and homeowners.
