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East Riverside, Waco: Rising Home Values Amid Shifting Ownership Trends
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
East Riverside, a neighborhood in Waco, Texas, has experienced significant changes in its housing market over the past decade. The area has seen a shift towards a renter-majority population, substantial increases in average home prices, and fluctuating rent prices. These trends reflect broader economic and demographic shifts in the region.
From 2013 to 2022, East Riverside underwent a notable transformation in homeownership rates. In 2013, the neighborhood had an even split between owners and renters at 50% each. However, by 2022, the homeownership rate had decreased to 39%, with renters comprising 61% of the population. This shift coincided with a dramatic increase in average home prices. In 2013, the average home price in East Riverside was $44,460, but by 2022, it had risen substantially to $113,340, representing a 155% increase over this period.
The relationship between federal interest rates and homeownership rates in East Riverside shows some correlation. In 2013, when interest rates were low at 0.11%, homeownership was at 50%. As interest rates gradually increased to 1.68% by 2022, homeownership declined to 39%. This trend aligns with the general principle that lower interest rates tend to encourage homeownership due to more affordable financing options. However, the sharp increase in home prices likely outweighed the benefits of low interest rates for many potential buyers.
Renter percentages in East Riverside increased from 50% in 2013 to 61% in 2022. Interestingly, average rent prices fluctuated during this period rather than showing a consistent upward trend. In 2013, the average rent was $839. It decreased to $674 in 2019 before rising again to $757 in 2022. These fluctuations could be attributed to changes in housing supply, local economic conditions, or shifts in the rental market dynamics.
In 2023, the average home price in East Riverside reached $113,512, showing a slight increase from 2022. However, 2024 has seen a decrease in average home prices to $107,181. This decline coincides with a significant increase in federal interest rates, which rose to 5.02% in 2023 and further to 5.33% in 2024. These higher interest rates may be contributing to a cooling of the housing market, making mortgages more expensive and potentially dampening demand.
Looking ahead, based on current trends and economic indicators, we can project potential scenarios for the next five years. Average home prices in East Riverside may experience moderate growth, possibly reaching around $125,000 by 2029, assuming economic conditions remain stable and interest rates don't increase significantly. Average rent prices could see a gradual increase, potentially reaching $850-$900 per month by 2029, driven by continued demand for rental properties in the area.
In summary, East Riverside has undergone significant changes in its housing market over the past decade. The neighborhood has seen a shift towards a renter-majority population, substantial increases in average home prices, and fluctuating rent prices. Recent data suggests a potential cooling in the housing market, likely influenced by rising interest rates. These trends highlight the dynamic nature of East Riverside's real estate market and its sensitivity to broader economic factors.
