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Arrowpoint, Gilbert: Resilient Home Values Amidst Economic Shifts
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Arrowpoint, a neighborhood in Gilbert, Arizona, has experienced significant changes in its housing market over the past decade. This analysis focuses on the trends in average home values, ownership rates, and rental market dynamics that have shaped the community's residential landscape. The homeownership rate in Arrowpoint has fluctuated notably, reaching a peak of 90% in 2017 before declining to 73% in 2022. This trend coincided with a substantial increase in average home prices, which rose from $236,598 in 2010 to $633,959 in 2022, representing a 168% increase over 12 years. The inverse relationship between homeownership rates and average home prices suggests that rising property values may have made homeownership less accessible for some potential buyers.
Federal interest rates have played a crucial role in influencing homeownership trends in Arrowpoint. From 2010 to 2016, historically low interest rates ranging from 0.09% to 0.40% likely contributed to the increase in homeownership rates from 69% in 2013 to 90% in 2017. As interest rates began to rise, reaching 1.83% in 2018 and 2.16% in 2019, homeownership rates started to decline, dropping to 84% by 2019.
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The rental market in Arrowpoint has also experienced significant changes. The percentage of renters increased from 10% in 2017 to 27% in 2022, indicating growing demand for rental properties. Average rent prices peaked at $2,102 in 2015 but have since decreased to $1,126 in 2022. This decline in average rent prices, coupled with the increase in the renter population, suggests a potential oversupply of rental units or a shift towards more affordable housing options in the area.
In 2023 and 2024, Arrowpoint's real estate market showed signs of stabilization. The average home price in 2023 was $601,404, a slight decrease from the 2022 peak, but still significantly higher than pre-2020 levels. In 2024, the average home price rose slightly to $616,716. This period also saw a sharp increase in federal interest rates, reaching 5.02% in 2023 and 5.33% in 2024, which may have contributed to the moderation in home prices.
Predictive models suggest that average home prices in Arrowpoint may continue to experience moderate growth over the next five years, albeit at a slower pace than the rapid increases seen in the early 2020s. Average rent prices are expected to stabilize and potentially increase slightly, as the rental market adjusts to changing demand and supply dynamics.
In conclusion, Arrowpoint has undergone significant changes in its housing market over the past decade. The neighborhood has shifted from peak homeownership to a more balanced mix of owners and renters, accompanied by substantial increases in average home prices. The interplay between federal interest rates, home prices, and rental trends has shaped the community's housing landscape, with recent data indicating a potential stabilization of the market. As Arrowpoint moves forward, it is likely to maintain its appeal as a diverse and dynamic residential area within Gilbert, Arizona.
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