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Bellevue, Texas: Homeownership Trends and Rising Property Values in a Small City
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
Bellevue, Texas is a small city that has experienced notable demographic and housing market changes over the past decade. The city has maintained a predominantly owner-occupied housing market, with homeownership rates fluctuating between 73% and 84% from 2013 to 2022. Average home prices and average rent have shown an overall upward trend, particularly in recent years.
The relationship between homeownership rates and average home prices in Bellevue reveals interesting patterns. In 2019, when the homeownership rate peaked at 84%, the average home price was $159,091. As home prices increased to $204,736 in 2022, there was a slight decrease in homeownership to 82%. This suggests that rising home prices may have made homeownership slightly less accessible for some residents.
Federal interest rates have played a role in homeownership trends in Bellevue. The period from 2013 to 2020 saw historically low interest rates, ranging from 0.09% to 0.38%. During this time, homeownership rates in Bellevue remained relatively high, between 73% and 84%. The low interest rates likely contributed to making mortgages more affordable, supporting the high rates of homeownership observed in the city.
Renter percentages and average rent prices in Bellevue have shown some correlation. In 2013, when 25% of the population were renters, the average rent was $392. By 2022, the renter percentage decreased to 18%, while the average rent increased significantly to $1,051. This substantial rise in rent prices may have influenced some renters to transition to homeownership, explaining the decrease in the renter population despite the city's overall population growth from 1,145 in 2013 to 1,286 in 2022.
In 2023 and 2024, Bellevue's housing market showed signs of cooling. The average home price decreased from the 2022 peak of $204,736 to $189,543 in 2023, and further to $177,376 in 2024. This decline coincides with a sharp increase in federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024. These higher interest rates likely contributed to the cooling housing market by making mortgages more expensive for potential buyers.
Looking ahead, based on recent trends and current economic conditions, it's projected that average home prices in Bellevue may continue to experience a slight decline or stabilization over the next five years. This forecast takes into account the current high interest rates and the recent cooling of the market. Average rent prices, however, are expected to continue their upward trajectory, albeit at a more moderate pace. This prediction is based on the consistent increase in rent prices observed over the past decade and the potential for increased demand in the rental market as some prospective buyers may be priced out of homeownership due to higher interest rates.
In summary, Bellevue has maintained a strong homeownership market despite fluctuations in home prices and interest rates. The city has seen significant increases in both average home prices and average rent over the past decade. However, recent data suggests a cooling trend in the housing market, likely influenced by rising interest rates. The rental market has shown resilience with steadily increasing prices, even as the proportion of renters has decreased. These trends highlight the dynamic nature of Bellevue's housing market and its responsiveness to broader economic factors.
