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Highland, Austin: Home Values Soar Amid Changing Ownership Trends
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Highland, a neighborhood in Austin, Texas, has experienced significant changes in its real estate market over the past decade. This area, known for its proximity to downtown and diverse community, has seen substantial fluctuations in homeownership rates and dramatic increases in both home prices and rent. From 2013 to 2022, Highland's homeownership rate varied considerably. Starting at 38% in 2013, it reached a peak of 45% in 2018 and 2019, before declining to 34% by 2022. During this same period, average home prices in the neighborhood showed a consistent and steep upward trend. In 2013, the average home price was $213,869, but by 2022, it had increased dramatically to $589,648, representing a 176% rise over nine years. The relationship between federal interest rates and homeownership rates in Highland appears complex. As interest rates gradually increased from 0.11% in 2013 to 1.83% in 2018, homeownership rates in Highland also rose from 38% to 45%. However, this trend reversed in subsequent years. Despite interest rates dropping to historic lows (0.08% in 2021), homeownership rates declined to 34% by 2022, suggesting that other factors, such as rapidly increasing home prices, may have outweighed the potential benefits of low interest rates for prospective homebuyers in the area.
Renter percentages and average rent prices in Highland have also shown notable trends. The percentage of renters increased slightly from 62% in 2013 to 66% in 2022. During this time, average rent rose from $847 to $1,410, a 66% increase. The population growth from 4,881 in 2013 to 5,616 in 2022 likely contributed to increased demand for rental properties, pushing up both the renter percentage and average rent prices.
In recent years, Highland's real estate market has experienced some shifts. The average home price decreased from its 2022 peak of $589,648 to $527,020 in 2023 and further to $493,391 in 2024, representing a 16% decrease. Concurrently, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024, which may have contributed to the cooling of home prices.
Predictive models suggest that average home prices in Highland may stabilize or experience modest growth over the next five years, assuming interest rates remain relatively high. Average rent prices are expected to continue their upward trajectory, albeit at a slower pace, driven by the neighborhood's sustained popularity and limited housing supply.
In conclusion, Highland has witnessed substantial increases in both average home prices and average rent prices over the past decade, with homeownership rates fluctuating in response to various market forces. The recent cooling of home prices, coupled with higher interest rates, may signal a shift towards a more balanced market in the coming years. However, the neighborhood's desirability and proximity to downtown Austin are likely to maintain upward pressure on both home values and rental rates in the long term.
