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Frisco, Texas: Rising Home Values and Shifting Ownership in a Fast-Growing Suburb
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Frisco, Texas, a rapidly growing suburb of Dallas, has experienced significant changes in its housing market over the past decade. Known for its excellent schools, numerous parks, and thriving economy, Frisco has become an attractive destination for families and professionals alike. The city has seen a general trend of increasing average home prices and average rent prices, while homeownership rates have fluctuated over time.
The relationship between homeownership rates and average home prices in Frisco reveals interesting patterns. In 2013, the homeownership rate stood at 72%, with an average home price of $298,342. As average home prices rose to $365,064 by 2015, the homeownership rate increased to 78%. However, this trend began to reverse in subsequent years. Despite continued increases in average home prices, reaching $417,929 in 2019, the homeownership rate declined to 66%. This suggests that rising home prices may have made homeownership less attainable for some residents.
Federal interest rates have played a role in shaping homeownership trends in Frisco. From 2013 to 2015, when interest rates remained low (0.11% to 0.13%), homeownership rates increased. As interest rates began to rise from 2016 onwards, reaching 2.16% in 2019, homeownership rates declined. This aligns with the general trend of lower interest rates encouraging homeownership due to more affordable financing options.
The rental market in Frisco has also experienced significant changes. In 2013, the renter percentage was 28%, with an average rent of $1,291. As the population grew from 136,783 in 2013 to 200,513 in 2019, the renter percentage increased to 34%, and the average rent rose to $1,540. This trend suggests that population growth and possibly increasing home prices have contributed to a growing rental market in Frisco.
Looking at more recent data, the average home price in Frisco reached $669,360 in 2023 and further increased to $686,505 in 2024. These figures represent a substantial rise from previous years, indicating continued strong demand in the housing market. Concurrently, federal interest rates have also increased significantly, reaching 5.02% in 2023 and 5.33% in 2024, which may impact affordability and homeownership trends in the near future.
Applying predictive models to forecast 5-year trends, it's anticipated that average home prices in Frisco will continue to rise, albeit potentially at a slower rate due to higher interest rates. Average rent prices are also expected to increase, driven by population growth and possible shifts towards renting if homeownership becomes less attainable. However, the rate of increase may moderate as the market adjusts to economic conditions and housing supply catches up with demand.
In summary, Frisco's housing market has demonstrated robust growth in both average home prices and average rent prices over the past decade. The city has experienced a shift from peak homeownership rates in the mid-2010s to a more balanced mix of owners and renters in recent years. The interplay between rising home prices, increasing interest rates, and population growth has shaped these trends. As Frisco continues to evolve, the housing market is likely to remain dynamic, with ongoing adjustments in response to economic factors and demographic changes.
