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Cedar Manor: Rising Home Values and Ownership Rates Defy Market Expectations
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
Cedar Manor, a vibrant neighborhood in St. Louis Park, Minnesota, has experienced significant changes in homeownership rates and housing prices over the past decade. The area has seen a general trend of increasing average home prices, while ownership percentages have fluctuated, showing a notable rise in recent years.
The relationship between homeownership rates and average home prices in Cedar Manor reveals interesting patterns. In 2013, the ownership rate was 51% with an average home price of $223,314. As average home prices steadily increased, reaching $323,190 by 2019, the ownership rate dropped to 48%. However, a remarkable shift occurred from 2020 onwards. The ownership rate surged from 58% in 2020 to 73% in 2022, coinciding with average home prices rising from $337,568 to $394,736 during the same period. This suggests that despite rising prices, more residents were able to purchase homes in recent years.
Federal interest rates have played a significant role in homeownership trends in Cedar Manor. From 2013 to 2016, when interest rates were extremely low (0.11% to 0.40%), homeownership rates remained relatively stable around 50%. As interest rates began to rise more substantially from 2017 (1%) to 2019 (2.16%), homeownership rates initially declined to 41% in 2017 but then started to recover. Interestingly, the dramatic increase in homeownership from 2020 to 2022 occurred despite rising interest rates, suggesting other factors were at play in driving homeownership in Cedar Manor during this period.
Renter percentages and average rent prices in Cedar Manor have shown an inverse relationship to homeownership trends. In 2013, the renter percentage was 48% with an average rent of $1,117. As average rent prices increased steadily, reaching $1,450 by 2019, the renter percentage rose to 52%. However, from 2020 to 2022, as homeownership surged, the renter percentage dropped dramatically from 42% to 27%, even as average rent prices continued to climb, reaching $1,642 in 2022. This suggests that many former renters in Cedar Manor became homeowners during this period, despite rising home prices and rents.
In 2023 and 2024, Cedar Manor's housing market continued to evolve. The average home price in 2023 was $401,927, showing a modest increase from 2022. In 2024, the average home price further rose to $406,185. These figures indicate a slowing but still upward trend in home values. Notably, federal interest rates increased significantly during this period, reaching 5.02% in 2023 and 5.33% in 2024, which could potentially impact future homeownership rates and housing market dynamics in the neighborhood.
Looking ahead, predictive models suggest that average home prices in Cedar Manor may continue to rise over the next five years, albeit at a more moderate pace. Based on historical trends, average home prices could potentially reach around $450,000 by 2029. Average rent prices are also expected to increase, potentially surpassing $1,800 per month within the same timeframe. However, these projections may be influenced by various factors including economic conditions, local development, and changes in housing policies.
In summary, Cedar Manor has experienced a significant shift towards homeownership in recent years, despite rising home prices and interest rates. This trend, coupled with increasing average rent prices, has led to a substantial decrease in the renter population. The neighborhood's housing market has shown resilience and growth, with average home prices continuing to rise even in the face of higher interest rates. These trends suggest a strong demand for homeownership in Cedar Manor, potentially driven by factors such as neighborhood desirability, local economic conditions, or changing demographics.
