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Home Values and Ownership in Dunbar-Manhattan Heights: A Decade of Volatility
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
Dunbar-Manhattan Heights, a neighborhood in Lubbock, Texas, has experienced significant changes in its real estate market over the past decade. This analysis examines the fluctuations in homeownership rates and the substantial increases in average home and rent prices from 2013 to 2022.
The homeownership rate in Dunbar-Manhattan Heights showed a slight overall decline from 55% in 2013 to 53% in 2022. During this same period, average home prices in the neighborhood saw a substantial increase. In 2013, the average home price was $43,183, which rose steadily to reach $73,464 by 2022, representing a 70% increase over nine years. This upward trend in home prices, despite the slight decrease in homeownership, suggests that while property values have appreciated, it may have become more challenging for some residents to transition from renting to owning.
Federal interest rates have played a role in shaping homeownership trends in the neighborhood. In 2013, when the federal interest rate was at a low 0.11%, the homeownership rate was 55%. As interest rates gradually increased, reaching 1.68% in 2022, we see a slight decline in homeownership to 53%. This aligns with the general trend of lower interest rates encouraging homeownership due to more affordable financing options.
The rental market in Dunbar-Manhattan Heights has also experienced significant changes. The percentage of renters increased from 45% in 2013 to 47% in 2022. Average rent prices have shown considerable volatility during this period. In 2013, the average rent was $773 per month. It peaked at $1,165 in 2018 before declining to $617 in 2022. This fluctuation in rent prices, coupled with the increasing home values, suggests a complex interplay of factors affecting housing affordability and choices in the neighborhood.
Looking at the most recent data, the average home price in Dunbar-Manhattan Heights reached $78,991 in 2023, showing continued appreciation. However, in 2024, there was a slight decrease to $74,877. This recent dip coincides with a significant increase in federal interest rates, which rose to 5.02% in 2023 and further to 5.33% in 2024. These higher interest rates may be contributing to a cooling effect on the housing market.
Based on the historical trends and current market conditions, we can make some predictions for the next five years. Average home prices in Dunbar-Manhattan Heights are likely to continue their overall upward trajectory, albeit at a more moderate pace due to higher interest rates. We might expect average home prices to reach around $85,000 to $90,000 by 2029. Rent prices, which have shown volatility, may stabilize and gradually increase, potentially reaching an average of $700 to $750 per month in the next five years.
In summary, Dunbar-Manhattan Heights has experienced a notable increase in property values over the past decade, with a slight decline in homeownership rates. The rental market has seen fluctuations in both occupancy and prices. Recent increases in interest rates may lead to a more balanced market in the coming years, with moderate growth in both home prices and rents. These trends reflect the ongoing evolution of this dynamic Lubbock neighborhood.
