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Golden Hills: Rising Home Values and Ownership Rates Reshape Mesa Neighborhood
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
Golden Hills, a dynamic neighborhood in Mesa, Arizona, has witnessed significant changes in homeownership rates and property values over the past decade. The community has experienced a general trend of increasing homeownership, accompanied by substantial rises in average home prices, while average rent prices have shown fluctuations.
The homeownership rate in Golden Hills has demonstrated a notable upward trajectory, particularly in recent years. In 2013, the rate stood at 66% and remained relatively stable until 2019. However, from 2020 onwards, there was a marked increase in homeownership. By 2022, the ownership rate had surged to 82%, representing a 16 percentage point increase over nine years. This rise in homeownership coincided with a substantial increase in average home prices. In 2013, the average home price in Golden Hills was $172,716. By 2022, it had more than doubled to $408,559, reflecting a 136.5% increase over the same period.
The relationship between federal interest rates and homeownership rates in Golden Hills reveals an intriguing pattern. Despite historically low interest rates from 2013 to 2021 (ranging from 0.08% to 0.4%), homeownership rates remained relatively stable until 2019. However, as interest rates began to rise in 2022 to 1.68%, homeownership paradoxically increased to 82%. This suggests that factors beyond interest rates, such as local economic conditions or housing market dynamics, may have played a significant role in driving homeownership in Golden Hills.
Renter percentages in Golden Hills have inversely mirrored the homeownership trend, decreasing from 34% in 2013 to 18% in 2022. Interestingly, average rent prices have shown considerable volatility during this period. In 2013, the average rent was $1,219, rising to a peak of $1,475 in 2015. After fluctuating between $1,273 and $1,431 from 2016 to 2019, average rent dropped to $1,066 in 2020 before surging to $1,568 in 2021. In 2022, it decreased again to $1,050. This volatility in rent prices occurred against a backdrop of a steadily increasing population, which grew from 3,247 in 2013 to 3,635 in 2022.
As of 2024, the average home price in Golden Hills stands at $409,439, showing a slight increase from the 2023 value of $398,612. This represents a modest recovery after a minor dip in 2023. The current federal interest rate in 2024 is 5.33%, which is slightly higher than the 2023 rate of 5.02%. These higher interest rates could potentially impact future homebuying activity in the neighborhood.
Looking ahead, based on historical trends and current market conditions, we can project potential scenarios for the next five years. Average home prices in Golden Hills may continue to rise, albeit at a more moderate pace, potentially reaching around $450,000 by 2029. Average rent prices, given their historical volatility, are more challenging to predict but could stabilize around $1,300 to $1,500 per month, assuming economic conditions remain stable.
In summary, Golden Hills has experienced a significant shift towards homeownership over the past decade, with average home prices more than doubling. The renter population has decreased, while rent prices have shown considerable volatility. Despite rising interest rates, the neighborhood has maintained strong homeownership growth, suggesting a robust local housing market. These trends indicate that Golden Hills is becoming an increasingly desirable area for homeowners, with potential for continued growth in property values in the coming years.
