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Avery Park: Rising Home Values and Declining Ownership in Fort Collins
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
Avery Park, located in Fort Collins, Colorado, is a dynamic neighborhood that has experienced significant shifts in its housing landscape over the past decade. This area has seen notable fluctuations in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market conditions. The ownership percentage in Avery Park has shown a general decline from 2013 to 2022, while average home prices have consistently increased. In 2013, the homeownership rate was 32%, with an average home price of $219,174. By 2022, the ownership rate had decreased to 22%, while the average home price had risen dramatically to $514,003. This inverse relationship suggests that as property values increased, homeownership became less attainable for many residents. The most significant drop in ownership occurred between 2021 and 2022, falling from 26% to 22%, coinciding with a sharp increase in average home prices from $452,494 to $514,003.
Federal interest rates have played a role in homeownership trends in Avery Park. From 2013 to 2016, when interest rates were historically low (ranging from 0.11% to 0.4%), homeownership rates remained relatively stable, hovering around 30%. However, as interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), we see a slight increase in homeownership to 39% in 2019, possibly due to buyers rushing to purchase before rates climbed further. The subsequent drop in homeownership from 2020 to 2022 coincides with rapidly increasing home prices, despite low interest rates in 2020 and 2021.
Renter percentages in Avery Park have generally increased as average rent prices have risen. In 2013, 68% of residents were renters, with an average rent of $1,318. By 2022, the renter percentage had increased to 78%, with average rent reaching $1,980. This trend suggests that as home prices became less affordable, more residents turned to renting. However, the relationship isn't always direct. For instance, in 2018, there was a temporary dip in the renter percentage to 63% despite rising rent prices, which could be attributed to factors such as changes in local employment or housing supply.
In 2023 and 2024, we see a stabilization in average home prices in Avery Park. The average home price in 2023 was $513,637, showing a slight decrease from 2022. In 2024, there's a modest increase to $517,520. This leveling off coincides with significantly higher interest rates, reaching 5.02% in 2023 and 5.33% in 2024, which likely cooled the rapid price growth seen in previous years.
Looking ahead, predictive models suggest that average home prices in Avery Park may continue to increase moderately over the next five years, but at a slower rate than seen in the 2010s. Average rent prices are expected to follow a similar trend, with steady but more modest increases. These projections are based on historical trends and current market conditions, including higher interest rates and potential economic factors.
In summary, Avery Park has experienced a significant shift towards a renter-majority population, driven by rapidly increasing home prices and fluctuating interest rates. The inverse relationship between homeownership rates and average home prices has been a defining characteristic of the neighborhood's housing market. Recent stabilization in home prices, coupled with higher interest rates, suggests a potential cooling of the market, which could impact future homeownership rates and rental demand in this vibrant Fort Collins community.
