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Durango's Soaring Home Values and Ownership: A Mountain City's Real Estate Boom
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
Durango, Colorado, nestled in the picturesque Animas River Valley, is a vibrant city known for its outdoor recreational opportunities and rich cultural heritage. Over the past decade, Durango has experienced significant shifts in homeownership rates and housing prices, reflecting broader economic trends and local market dynamics.
The homeownership rate in Durango has shown a notable upward trend, increasing from 56% in 2013 to 62% in 2022. This rise in homeownership coincided with a substantial increase in average home prices, which grew from $348,571 in 2013 to $675,659 in 2022, representing a remarkable 93.8% increase over this period. The most dramatic price surge occurred between 2020 and 2022, with average home prices jumping by 41.4% in just two years.
Federal interest rates have played a crucial role in shaping homeownership trends in Durango. The period from 2013 to 2016 saw historically low interest rates, hovering around 0.1%, which likely contributed to the initial increase in homeownership from 56% to 59%. As interest rates began to rise from 2017 onwards, reaching 1.83% in 2018, the homeownership rate continued to climb, peaking at 64% in 2021. This suggests that other factors, such as local economic conditions and housing supply, may have also influenced homeownership rates in Durango.
Conversely, the percentage of renters in Durango has decreased from 44% in 2013 to 38% in 2022. Despite this decline, average rent prices have fluctuated over the years. In 2013, the average rent was $1,436, which peaked at $1,456 in 2014 before declining to $1,290 in 2022. This 11.4% decrease in average rent from 2013 to 2022 occurred despite the city's population growth from 25,904 to 26,787 during the same period, suggesting that factors such as increased housing supply or shifts in housing preferences may have influenced rental market dynamics.
In 2023 and 2024, Durango's housing market continued its upward trajectory. The average home price reached $699,657 in 2023 and further increased to $725,367 in 2024, representing a 3.5% and 3.7% year-over-year increase, respectively. These price increases coincided with rising federal interest rates, which stood at 5.02% in 2023 and 5.33% in 2024, potentially impacting affordability for prospective homebuyers.
Looking ahead, predictive models suggest that Durango's housing market will continue to evolve. Average home prices are projected to maintain their upward trend, potentially reaching around $850,000 by 2029. Rent prices, which have shown more variability, are expected to stabilize and potentially increase moderately, possibly reaching an average of $1,500 per month within the next five years.
In summary, Durango has experienced a significant shift towards homeownership over the past decade, accompanied by substantial increases in average home prices. While the rental market has seen a decline in the proportion of renters and fluctuations in average rent prices, the overall housing market remains dynamic. The continued rise in home prices, coupled with higher interest rates, may present challenges for affordability, potentially influencing future homeownership rates and rental demand in this scenic Colorado city.
