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Five Mile Creek: Rising Home Values Amidst Low Ownership Rates
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Five Mile Creek, a neighborhood in Dallas, Texas, has experienced significant changes in its housing market over the past decade. This area is characterized by a persistently high percentage of renters and substantial growth in average home prices. From 2013 to 2022, the homeownership rate in Five Mile Creek remained low, fluctuating between 12% and 15%. During this same period, average home prices saw remarkable growth, increasing from $85,378 in 2013 to $272,796 in 2022, representing a 219% increase over nine years. Despite the growing value of properties, many residents have continued to opt for renting rather than purchasing homes in the area.
Federal interest rates have influenced homeownership trends in Five Mile Creek. Between 2013 and 2016, when interest rates were exceptionally low (ranging from 0.09% to 0.4%), the homeownership rate remained stable at around 13%. However, as interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, the homeownership rate slightly decreased to 12-13%. This trend aligns with the general principle that higher interest rates can make homeownership less affordable, potentially contributing to the persistently low homeownership rates in the neighborhood.
The renter population in Five Mile Creek has consistently dominated the housing market, with the percentage of renters ranging from 84% to 88% between 2013 and 2022. During this period, average rent prices showed a steady upward trend, increasing from $777 in 2013 to $873 in 2022, representing a 12.4% rise over nine years. The high renter percentage, combined with the moderate increase in average rent prices, suggests a strong demand for rental properties in the area. This demand may be driven by factors such as the neighborhood's growing population, which increased from 5,986 in 2013 to 7,072 in 2022, an 18.1% growth.
In 2023 and 2024, Five Mile Creek continued to see changes in its housing market. The average home price in 2023 was $273,428, showing a slight increase from 2022. In 2024, the average home price further rose to $280,790. Concurrently, federal interest rates climbed to 5.02% in 2023 and 5.33% in 2024, reaching levels not seen since before the 2008 financial crisis. These higher interest rates may impact homebuying decisions in the neighborhood, potentially affecting future homeownership rates.
Looking ahead, based on historical trends and current market conditions, it's projected that average home prices in Five Mile Creek will continue to rise over the next five years, albeit at a more moderate pace than seen in the past decade. Average rent prices are also expected to increase, driven by the persistent high demand for rental properties in the area. However, the rate of increase may be tempered by affordability concerns and potential economic factors.
In summary, Five Mile Creek has demonstrated a clear preference for renting over homeownership, with a consistently high percentage of renters despite significant growth in average home prices. The neighborhood has experienced substantial appreciation in property values, while average rent prices have shown steady, moderate increases. These trends, coupled with population growth and fluctuating interest rates, paint a picture of a dynamic and evolving housing market in Five Mile Creek.
