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Fulshear, Texas: Consistently High Homeownership Amid Rising Property Values
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
Fulshear, Texas, a rapidly growing city in Fort Bend County, is located approximately 33 miles west of Houston. Known for its high quality of life and excellent schools, Fulshear has experienced explosive growth over the past decade. The city has maintained consistently high homeownership rates, hovering around 94-95% since 2013. Average home prices have shown a steady upward trend, while average rent prices have fluctuated but generally increased over time.
The relationship between homeownership rates and average home prices in Fulshear is notable. From 2013 to 2022, the homeownership rate remained remarkably stable, ranging from 92% to 95%. During this same period, average home prices increased significantly, rising from $284,713 in 2013 to $510,164 in 2022, representing a 79% increase. Despite this substantial rise in home prices, the high homeownership rate persisted, suggesting strong demand for housing in the area and residents' ability to afford homes even as prices climbed.
Federal interest rates have played a role in Fulshear's housing market dynamics. From 2013 to 2016, interest rates remained very low, ranging from 0.09% to 0.40%. During this period, homeownership rates in Fulshear increased slightly from 92% to 95%. As interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), homeownership rates in Fulshear remained stable at 94-95%, indicating resilience in the local housing market despite changes in financing costs.
Renter percentages in Fulshear have consistently been low, ranging from 4% to 8% between 2013 and 2022. Average rent prices showed an overall upward trend during this period, increasing from $2,112 in 2013 to $2,363 in 2022, a 12% rise. Interestingly, despite the city's population growing dramatically from 3,815 in 2013 to 31,954 in 2022, the rental market remained a small fraction of the housing landscape. This suggests that new residents predominantly opted for homeownership rather than renting.
In 2023 and 2024, Fulshear's housing market continued to evolve. The average home price in 2023 reached $525,954, a 3.1% increase from 2022. In 2024, it further rose to $533,149, showing a 1.4% increase from the previous year. 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. Despite these higher interest rates, Fulshear's housing market has demonstrated resilience, with continued price appreciation, albeit at a slower pace.
Looking ahead, based on historical trends and current market conditions, we can project future housing market dynamics in Fulshear. Over the next five years, average home prices are likely to continue their upward trajectory, though potentially at a more moderate pace due to higher interest rates. We might expect average home prices to reach approximately $600,000 by 2029. Average rent prices, which have shown more volatility, may continue to increase but at a slower rate, potentially reaching around $2,600 by 2029.
In summary, Fulshear's housing market is characterized by persistently high homeownership rates, steadily increasing average home prices, and a relatively small but growing rental market. The city's rapid population growth has been accompanied by robust demand for owner-occupied housing, even in the face of rising home prices and fluctuating interest rates. As Fulshear continues to develop, it will be important to monitor how these trends evolve, particularly in light of changing economic conditions and demographic shifts.
