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Barnum West: Rising Home Values and Ownership Rates Amid Market Fluctuations
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
Barnum West, a vibrant neighborhood in Denver, Colorado, has experienced significant changes in its real estate landscape over the past decade. This area, known for its proximity to Barnum Park and easy access to downtown Denver, has seen notable shifts in homeownership rates and property values. The homeownership rate in Barnum West has shown a general upward trend, increasing from 66% in 2013 to 70% in 2022. This rise in homeownership coincides with a substantial increase in average home prices. In 2013, the average home price in the neighborhood was $141,495, which more than tripled to $444,674 by 2022. This remarkable growth in property values suggests a strong demand for homes in the area and potentially reflects improvements in local amenities and infrastructure.
The relationship between federal interest rates and homeownership rates in Barnum West presents an interesting dynamic. Despite historically low interest rates between 2013 and 2021 (ranging from 0.08% to 2.16%), homeownership rates remained relatively stable, hovering around 64-66%. However, a notable increase in homeownership occurred in 2020 and 2021, reaching 71% and 69% respectively, coinciding with interest rates dropping to 0.38% and 0.08%. This suggests that extremely low interest rates may have encouraged more residents to purchase homes during this period.
Renter percentages in Barnum West have generally decreased as homeownership increased. The percentage of renters declined from 34% in 2013 to 30% in 2022. Despite this decrease, average rent prices have shown an upward trend. In 2013, the average rent was $1,180, which increased to $1,335 by 2022, representing a 13% increase over nine years. The population growth from 7,161 in 2013 to 7,490 in 2022 may have contributed to the upward pressure on rent prices, even as the proportion of renters decreased.
Looking at the most recent data, the average home price in Barnum West for 2023 was $437,914, showing a slight decrease from 2022. However, in 2024, the average home price has rebounded slightly to $440,827. This recent stability in home prices comes at a time when federal interest rates have increased significantly, reaching 5.33% in 2024. These higher interest rates may be moderating home price growth and potentially impacting affordability for prospective buyers.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in Barnum West may continue to experience modest growth, potentially reaching around $480,000 by 2029. This projection takes into account the current interest rate environment and the historical price appreciation in the neighborhood. For rent prices, the forecast suggests a continued upward trend, potentially reaching an average of $1,500 per month by 2029, reflecting ongoing demand for rental properties in the area.
In summary, Barnum West has demonstrated resilience and growth in its real estate market. The neighborhood has seen a significant increase in homeownership rates and property values over the past decade, with a corresponding decrease in the proportion of renters. Despite this shift, rent prices have continued to rise, albeit at a slower pace than home prices. The recent stabilization of home prices in 2023-2024, coupled with higher interest rates, suggests a potential cooling of the market, but long-term trends indicate continued, though more moderate, growth in both home values and rent prices.
