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Home Values and Ownership Trends in Hillsboro, Texas: A Small City with a Rich History
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
Hillsboro, a charming city in Texas known for its rich history and the iconic Hill County Courthouse, has experienced dynamic shifts in its housing market over the past decade. The city has maintained a relatively stable homeownership rate while witnessing significant growth in both home values and rental costs. This analysis examines the trends in homeownership, home prices, and rent prices from 2013 to 2024, along with projections for the future.
The homeownership rate in Hillsboro has shown resilience, with a slight upward trend in recent years. In 2013, 62% of residents owned their homes. This figure dipped slightly to 59% in 2015 but rebounded to 64% by 2022. This upward trend in homeownership coincides with a substantial increase in average home prices. In 2013, the average home price in Hillsboro was $69,977. By 2022, this figure had more than doubled to $162,073, representing a 131.6% increase over nine years.
The relationship between federal interest rates and homeownership rates in Hillsboro follows a general trend observed nationwide. As interest rates remained low between 2013 and 2021, ranging from 0.08% to 1.83%, homeownership rates in Hillsboro gradually increased from 62% to 64%. This aligns with the principle that lower interest rates make mortgages more affordable, potentially encouraging homeownership.
Renter percentages in Hillsboro have fluctuated inversely to homeownership rates. The percentage of renters peaked at 41% in 2015 and has since decreased to 36% in 2022. Interestingly, despite this decrease in the renter population, average rent prices have shown a consistent upward trend. In 2013, the average rent was $667 per month. By 2022, it had risen to $780, an increase of 17% over nine years. This increase in rent prices, despite a decreasing renter population, could be attributed to various factors including improved housing quality or increased demand for rental properties in specific areas of the city.
In 2023 and 2024, Hillsboro's housing market continued its upward trajectory. The average home price reached $163,912 in 2023 and further increased to $170,370 in 2024, representing a 3.9% year-over-year growth. This growth occurred despite a significant increase in federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024.
Looking ahead, predictive models suggest that Hillsboro's housing market will continue to grow, albeit at a more moderate pace. Over the next five years, average home prices are projected to increase by approximately 15-20%, potentially reaching around $200,000 by 2029. Average rent prices are expected to follow a similar trend, with an estimated increase of 10-15% over the same period, potentially reaching close to $900 per month.
In summary, Hillsboro has demonstrated a resilient and growing housing market. The city has maintained a stable homeownership rate while experiencing significant appreciation in home values. The rental market, despite a decreasing renter population, has seen steady increases in average rent prices. With continued growth projected for both home prices and rents, Hillsboro remains an attractive market for both homeowners and real estate investors.
