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Garfield Park's Soaring Home Values: A Decade of Remarkable Growth
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
Garfield Park, located in Grand Rapids, Michigan, has experienced significant changes in its housing market over the past decade. This neighborhood has shown resilience with stable homeownership rates despite substantial increases in average home prices. From 2013 to 2022, Garfield Park saw a dramatic rise in average home values, increasing from $55,427 to $205,934, representing a 271% growth over nine years.
The homeownership rate in Garfield Park has fluctuated between 2013 and 2022. Starting at 66% in 2013, it decreased to 59% in 2015, but rebounded to 66% by 2022. This trend occurred alongside changes in federal interest rates, which ranged from historic lows of 0.11% to 0.4% between 2013 and 2016, and then rose to 1.68% by 2022. The relationship between interest rates and homeownership rates suggests that local factors played a significant role in housing trends beyond just interest rates.
The rental market in Garfield Park has generally mirrored the inverse of homeownership rates. The percentage of renters increased from 33% in 2013 to a peak of 40% in 2015, before settling at 34% in 2022. Average rent prices showed an overall upward trend during this period, increasing from $937 in 2013 to $964 in 2022, a 2.9% increase. Notably, rent prices reached a peak of $1,009 in 2019 before slightly decreasing in subsequent years.
In 2023 and 2024, Garfield Park continued to see growth in average home prices. The average home price reached $207,757 in 2023 and further increased to $220,682 in 2024, representing a 6.2% year-over-year increase. This growth occurred despite a significant rise in federal interest rates, which stood at 5.02% in 2023 and 5.33% in 2024. These higher interest rates have not yet appeared to dampen the local housing market's momentum.
Based on historical trends and current market conditions, average home prices in Garfield Park are expected to continue their upward trajectory over the next five years. However, the rate of increase may moderate due to higher interest rates. Average rent prices are also likely to see modest increases, potentially returning to or surpassing their 2019 peak within the next five years.
In summary, Garfield Park has demonstrated resilience in its housing market, with homeownership rates remaining stable despite significant increases in average home prices. The neighborhood has weathered fluctuations in both the rental and ownership markets, showing overall growth in property values. The continued rise in home prices, even in the face of higher interest rates, suggests a strong demand for housing in this area of Grand Rapids.
