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Freeport, Texas: Coastal City's Homeownership Rates and Housing Prices Reflect Economic Shifts
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Freeport, Texas, a coastal community known for its beaches and petrochemical industry, has experienced significant changes in its housing market over the past decade. These changes reflect broader economic trends and local market dynamics, particularly in homeownership rates and housing prices. Homeownership in Freeport has shown a fluctuating trend. In 2013, 62% of residents owned their homes. This rate declined to a low of 52% in 2019 before rebounding to 64% in 2022. Concurrently, average home prices have generally trended upward. In 2013, the average home price was $69,604, which steadily increased to $148,603 by 2022, representing a significant 113% increase over this period.
The relationship between federal interest rates and homeownership rates in Freeport shows some correlation. As interest rates remained low between 2013 and 2016 (ranging from 0.11% to 0.40%), homeownership rates initially declined from 62% to 56%. However, as rates began to rise more significantly from 2017 to 2019 (1.00% to 2.16%), homeownership rates continued to decrease, reaching a low of 52% in 2019. Interestingly, despite rising interest rates in 2022 (1.68%), homeownership rebounded to 64%, suggesting other local factors may have influenced this trend.
Renter percentages in Freeport have mirrored the inverse of homeownership trends. The proportion of renters increased from 38% in 2013 to a peak of 48% in 2019, before declining to 36% in 2022. Average rent prices have shown an overall upward trend, rising from $852 in 2013 to $931 in 2022, with some fluctuations in between. The highest average rent was recorded in 2021 at $1,068, coinciding with a period of population decline from 14,493 in 2019 to 13,544 in 2021.
In 2023, the average home price in Freeport decreased to $141,546, a 4.7% drop from 2022. This decline continued into 2024, with prices further decreasing to $137,084. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, potentially influencing the housing market dynamics.
Looking ahead, based on recent trends and current economic conditions, we can project that average home prices in Freeport may continue to experience moderate fluctuations. A conservative estimate suggests prices could range between $135,000 and $150,000 over the next five years. Average rent prices are likely to follow a similar pattern, potentially fluctuating between $900 and $1,100 per month, influenced by local economic factors and housing demand.
In summary, Freeport has experienced significant changes in its housing market over the past decade. The city has seen a recent resurgence in homeownership rates, despite rising home prices and interest rates. The rental market has shown volatility in both occupancy rates and prices. These trends reflect the complex interplay of local economic conditions, population changes, and broader market forces, painting a picture of a dynamic housing market in this Texas coastal city.
