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Cantarra, Austin: Resilient Homeownership Amidst Rising Values
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
Cantarra, a vibrant neighborhood in Austin, Texas, has experienced significant growth and transformation over the past decade. This area has seen notable shifts in homeownership rates and housing prices, reflecting the dynamic nature of Austin's real estate market. The homeownership rate in Cantarra has shown an upward trend, particularly in recent years. In 2013, the neighborhood had a homeownership rate of 66%. This figure remained relatively stable until 2020 when it saw a substantial increase to 70%. The trend continued, reaching 78% in 2021 and settling at 75% in 2022. This increase in homeownership coincides with a dramatic rise in average home prices. In 2013, the average home price in Cantarra was $192,483. By 2022, this figure had skyrocketed to $472,928, representing a remarkable 146% increase over nine years.
The relationship between federal interest rates and homeownership rates in Cantarra presents an interesting case. Despite historically low interest rates between 2013 and 2021 (ranging from 0.08% to 1.68%), homeownership rates remained relatively stable until 2020. The significant jump in homeownership from 2020 to 2021 (from 70% to 78%) occurred when interest rates were at their lowest (0.08% in 2021), suggesting that extremely low rates may have encouraged more people to buy homes.
Renter percentages in Cantarra have generally decreased as homeownership rates increased. In 2013, 30% of residents were renters. This percentage fluctuated slightly over the years, reaching a peak of 37% in 2017 and 2019, before declining to 22% in 2021 and 25% in 2022. Average rent prices have shown a gradual increase over time, rising from $1,185 in 2013 to $1,311 in 2018. However, there was a slight decrease to $1,158 in 2022. The population growth from 3,488 in 2013 to 10,945 in 2022 likely contributed to the overall upward pressure on rent prices despite the decreasing percentage of renters.
In 2023 and 2024, Cantarra's housing market experienced some significant changes. The average home price decreased from its peak in 2022, settling at $403,258 in 2023 and further declining to $385,077 in 2024. This represents a 14.7% decrease from 2022 to 2023 and a further 4.5% decrease from 2023 to 2024. Concurrently, federal interest rates rose sharply to 5.02% in 2023 and 5.33% in 2024, which likely contributed to the cooling of home prices.
Looking ahead, based on recent trends and current market conditions, we can forecast some potential scenarios for the next five years. Average home prices in Cantarra may continue to experience a slight decline or stabilization in the short term, potentially settling around $375,000 to $400,000 by 2029. This forecast takes into account the recent price corrections and the higher interest rate environment. Average rent prices, which have shown resilience even during periods of homeownership growth, might see modest increases, potentially reaching around $1,300 to $1,350 by 2029.
In summary, Cantarra has demonstrated a strong trend towards increased homeownership, with significant growth in average home prices over the past decade. The neighborhood has shown resilience in the face of changing economic conditions, with recent years seeing a slight cooling in the housing market. The interplay between federal interest rates, homeownership rates, and housing prices continues to shape the real estate landscape in this dynamic Austin neighborhood.
