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Georgetown's Housing Market: Rising Home Values and Stable Ownership in a Growing Texas City
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
Georgetown, Texas, a rapidly growing city north of Austin, is known for its charming historic downtown and beautiful natural attractions like the Blue Hole. Over the past decade, Georgetown has experienced significant changes in its housing market. The city has seen fluctuations in homeownership rates, alongside substantial increases in both average home prices and average rent prices.
The homeownership rate in Georgetown has remained relatively stable, with some fluctuations between 2016 and 2022. In 2016, the homeownership rate was 73%, which decreased to 66% in 2019 before rising again to 72% in 2022. During this same period, average home prices in Georgetown saw a dramatic increase. In 2016, the average home price was $291,819, which rose steadily to $503,881 by 2022, representing a 73% increase over six years. This trend suggests that despite rising home prices, Georgetown has managed to maintain a relatively high rate of homeownership.
Federal interest rates can play a significant role in homeownership trends. From 2016 to 2020, interest rates remained relatively low, ranging from 0.4% to 2.16%. This period coincided with Georgetown's stable homeownership rates and rising home prices, as lower interest rates typically make mortgages more affordable and encourage home buying. However, the sharp increase in interest rates from 0.08% in 2021 to 5.02% in 2023 may have contributed to the slight decrease in homeownership from 70% in 2021 to 68% in 2020.
Renter percentages in Georgetown have fluctuated inversely to homeownership rates, ranging from 25% to 34% between 2016 and 2022. Average rent prices have shown a consistent upward trend during this period. In 2016, the average rent was $1,262, which increased to $1,870 by 2022, representing a 48% increase. This rise in rent prices occurred alongside population growth, with Georgetown's population increasing from 67,137 in 2016 to 86,505 in 2022, a 29% increase. The growing population likely contributed to increased demand for rental properties, pushing up average rent prices.
In 2023 and 2024, Georgetown's housing market showed signs of cooling. The average home price decreased from $503,881 in 2022 to $465,329 in 2023, and further to $446,385 in 2024. This represents an 11.4% decrease over two years. Concurrently, federal interest rates remained high, at 5.02% in 2023 and 5.33% in 2024, which likely contributed to the cooling housing market.
Looking ahead, predictive models suggest that average home prices in Georgetown may continue to stabilize or experience modest growth over the next five years, assuming interest rates begin to decrease. Average rent prices are likely to continue their upward trend, albeit at a slower pace, driven by population growth and demand for housing. These predictions are based on current trends and economic factors.
In summary, Georgetown has experienced significant growth in both population and housing prices over the past decade. Despite rising home prices, the city has maintained a relatively high homeownership rate. The rental market has seen steady increases in average rent prices, reflecting the growing population and demand for housing. Recent data shows a cooling in the housing market, likely influenced by higher interest rates. Moving forward, Georgetown's housing market is expected to stabilize, with potential for modest growth in both home prices and rent prices.
