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Gilbert, Arizona: Home Values Soar as Ownership Remains Stable
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
Gilbert, Arizona, a vibrant town in the Phoenix metropolitan area, has experienced significant growth and changes in its housing market over the past decade. Known for its excellent schools and family-friendly atmosphere, Gilbert has seen fluctuations in homeownership rates and substantial increases in both average home prices and average rent prices.
The homeownership rate in Gilbert has remained relatively stable, with some minor fluctuations. In 2013, the homeownership rate was 74%, which decreased slightly to 69% in 2016 before rebounding to 77% in 2018. By 2022, it settled at 74%. During this period, average home prices in Gilbert saw a remarkable increase. In 2013, the average home price was $246,745, which more than doubled to $591,595 by 2022, representing a 140% increase over nine years.
Federal interest rates have played a role in homeownership trends in Gilbert. From 2013 to 2020, interest rates remained low, ranging from 0.09% to 2.16%. This period coincided with relatively stable homeownership rates and steadily increasing home prices. The low interest rates likely contributed to maintaining homeownership levels despite rising prices, as financing remained affordable for many buyers.
Renter percentages in Gilbert have shown an inverse relationship to homeownership rates, naturally. The percentage of renters increased from 26% in 2013 to 31% in 2016, before decreasing to 23% in 2018 and settling at 26% in 2022. Average rent prices have consistently increased over this period. In 2013, the average rent was $1,242, which rose to $2,064 by 2022, representing a 66% increase. This substantial rise in rent prices occurred despite fluctuations in the renter population, suggesting strong demand for rental properties in Gilbert.
In 2023 and 2024, Gilbert's housing market showed signs of stabilization after years of rapid growth. The average home price in 2023 was $560,727, a slight decrease from the 2022 peak. However, in 2024, prices rebounded to $579,924. Interestingly, this occurred despite higher federal interest rates, which reached 5.02% in 2023 and 5.33% in 2024, potentially impacting affordability for some buyers.
Looking ahead, predictive models suggest that Gilbert's housing market will continue to evolve. Over the next five years, average home prices are expected to increase at a more moderate pace, potentially reaching around $650,000 by 2029. Average rent prices are projected to follow a similar trend, potentially rising to approximately $2,500 per month in the same timeframe.
In summary, Gilbert has experienced substantial growth in both average home prices and average rent prices over the past decade. Homeownership rates have remained relatively stable despite these increases, likely supported by low interest rates until recent years. The town's desirability, coupled with broader economic factors, continues to drive demand in both the ownership and rental markets. As Gilbert moves forward, the housing market is expected to continue growing, albeit at a more moderate pace, reflecting the town's ongoing appeal and economic stability.
