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Forman's Housing Shift: Soaring Home Values and Declining Ownership in Plano, Texas
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
The Forman neighborhood in Plano, Texas has undergone significant changes in its housing market over the past decade. This analysis explores the trends in homeownership rates, average home prices, and average rent prices, providing insights into the evolving dynamics of this community. From 2013 to 2022, Forman experienced a substantial shift in its homeownership landscape. The percentage of homeowners decreased from 56% in 2013 to 41% in 2022. This decline in homeownership coincided with a remarkable increase in average home prices. The average home price in Forman rose from $120,422 in 2013 to $324,584 in 2022, representing a 169% increase over nine years. This inverse relationship between homeownership rates and average home prices suggests that rising property values may have priced out potential buyers, pushing more residents towards renting.
Federal interest rate trends provide additional context to these housing market changes. From 2013 to 2016, interest rates remained below 0.5%, which typically encourages homeownership due to lower borrowing costs. During this period, homeownership rates in Forman remained relatively stable at around 60%. However, as interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, homeownership rates in Forman started to decline more rapidly. This correlation suggests that increasing interest rates may have contributed to the decreasing affordability of homeownership in the neighborhood.
As homeownership declined, the percentage of renters in Forman increased from 43% in 2013 to 58% in 2022. Interestingly, average rent prices did not show a consistent upward trend during this period. In 2013, the average rent was $1,533, and it fluctuated over the years, reaching $1,528 in 2022. This relatively stable rent pricing, despite the increasing proportion of renters, could be attributed to various factors such as new rental unit developments or local rent control measures.
Looking at the most recent data, the average home price in Forman continued to rise, reaching $333,888 in 2023 and $338,709 in 2024. This represents a 4.3% increase from 2022 to 2024. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, potentially impacting homebuying affordability and contributing to the ongoing shift towards renting in the neighborhood.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in Forman will continue to increase, potentially reaching around $400,000 by 2029. This projection is based on the historical growth rate and assumes similar market conditions persist. Average rent prices are expected to show a moderate increase, potentially reaching about $1,700 by 2029, reflecting the growing demand for rental properties in the area.
In summary, the Forman neighborhood has experienced a significant shift from homeownership to renting over the past decade, driven by rapidly increasing home prices and rising interest rates. Despite the growing proportion of renters, average rent prices have remained relatively stable. The continued rise in home prices and high interest rates suggest that this trend towards renting may persist in the near future, shaping the character and demographics of the Forman community.
