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Dewey Hill's Rising Home Values and Strong Ownership Rates: A Decade of Growth
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
Dewey Hill, a neighborhood in Edina, Minnesota, is a small but vibrant community that has experienced dynamic changes in its housing market over the past decade. This area has seen fluctuations in homeownership rates, with a general trend towards increased owner occupancy. Average home prices have shown steady growth, while average rent prices have experienced some volatility.
The homeownership rate in Dewey Hill has generally increased from 2013 to 2022. In 2013, 76% of housing units were owner-occupied, and this figure rose to 81% by 2022. This upward trend in homeownership coincided with a significant increase in average home prices. In 2013, the average home price was $268,755, and by 2022, it had risen to $387,412, representing a 44% increase over nine years. This correlation suggests that despite rising home prices, more residents were able to transition into homeownership, possibly due to favorable economic conditions or increased desirability of the neighborhood.
Federal interest rates play a crucial role in homeownership trends. From 2013 to 2016, when interest rates were historically low (ranging from 0.11% to 0.4%), homeownership in Dewey Hill increased from 76% to 81%. This aligns with the general trend of lower interest rates encouraging homeownership due to more affordable financing options. However, even as interest rates began to rise more sharply from 2017 (1%) to 2019 (2.16%), homeownership in the neighborhood remained stable at 82%, indicating other factors were also influencing the local housing market.
Renter percentages in Dewey Hill have generally decreased as homeownership increased. In 2013, 24% of housing units were renter-occupied, declining to 19% by 2022. Interestingly, average rent prices have not shown a consistent trend during this period. In 2013, the average rent was $1,887, peaking at $1,907 in 2015 before declining to $1,684 in 2022. This fluctuation in rent prices, coupled with the decreasing percentage of renters, suggests a complex rental market possibly influenced by factors such as changes in housing supply, local economic conditions, or shifts in the desirability of renting versus owning in the neighborhood.
In 2023, the average home price in Dewey Hill reached $391,365, showing continued growth from previous years. This trend continued into 2024, with average home prices rising to $397,323. Concurrently, federal interest rates increased significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homeownership trends in the neighborhood.
Looking ahead, based on historical trends and current market conditions, we can project that average home prices in Dewey Hill will likely continue to appreciate over the next five years, albeit potentially at a slower rate due to higher interest rates. Average rent prices may stabilize or see modest increases as the rental market adjusts to changing demand and economic factors.
In summary, Dewey Hill has demonstrated a strong trend towards homeownership over the past decade, with increasing average home prices and fluctuating rent prices. The neighborhood has shown resilience in maintaining high homeownership rates even in the face of rising home prices and interest rates. As we move forward, the interplay between housing prices, interest rates, and local economic factors will continue to shape the housing market in this Edina neighborhood.
