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Aurora's Home Values Soar: Homeownership Rises Despite Price Increases
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
Aurora, Colorado, the third-largest city in the state, is known for its diverse population and proximity to Denver. Over the past decade, Aurora has experienced significant changes in homeownership rates, average home prices, and average rent prices. The city has seen a general trend of increasing homeownership, rising average home values, and growing average rent costs.
The homeownership rate in Aurora has shown a notable upward trend, increasing from 55% in 2013 to 62% in 2022. This rise in homeownership coincided with a substantial increase in average home prices. In 2013, the average home price in Aurora was $191,540, which grew dramatically to $501,417 by 2022, representing a 161.8% increase over nine years. This trend suggests that despite rising home prices, more residents were able to enter the housing market, possibly due to factors such as income growth or favorable lending conditions.
Federal interest rates play a crucial role in homeownership trends. From 2013 to 2016, when interest rates were historically low (ranging from 0.11% to 0.4%), Aurora saw a steady increase in homeownership from 55% to 57%. As interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), homeownership in Aurora continued to climb, reaching 62% by 2019. This suggests that other local factors, such as job growth or housing supply, may have had a stronger influence on homeownership than interest rates during this period.
Renter percentages in Aurora have generally decreased as homeownership rates rose. In 2013, 45% of Aurora's residents were renters, which decreased to 38% by 2022. Despite this decline in the renter population, average rent prices have consistently increased. The average rent price rose from $987 in 2013 to $1,725 in 2022, a 74.8% increase. This trend of rising rent prices despite a decreasing renter population could be attributed to factors such as overall housing demand, increased property values, or improvements in rental property quality.
Looking at the most recent data, the average home price in Aurora decreased slightly to $486,738 in 2023 but is projected to increase to $492,966 in 2024. This slight dip and subsequent rise occur alongside a significant increase in federal interest rates, which jumped to 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homeownership trends and housing affordability in the city.
Applying predictive models to forecast 5-year trends, it's anticipated that average home prices in Aurora will continue to rise, albeit at a potentially slower rate due to higher interest rates. Average rent prices are also expected to increase, driven by ongoing demand for housing in the area and the overall cost of living increases.
In summary, Aurora has experienced a noteworthy increase in homeownership rates over the past decade, despite significant growth in average home prices. The rental market has seen a decrease in the percentage of renters but a substantial increase in average rent prices. These trends reflect a dynamic housing market in Aurora, influenced by various economic factors, including interest rates, local economic conditions, and housing supply and demand dynamics.
