Jefferson Park, a Denver Neighborhood, Experiences Dramatic Housing Market Changes Jefferson Park, a vibrant neighborhood in Denver, Colorado, has experienced significant changes in its housing landscape over the past decade. This area has seen a notable shift in homeownership rates, coupled with substantial increases in both average home prices and average rent prices. The homeownership rate in Jefferson Park has fluctuated over the years, with a general downward trend from 2013 to 2018, followed by a slight recovery. In 2013, 34% of residents owned their homes, but this figure dropped to a low of 22% by 2018. However, there has been a modest rebound since then, with homeownership reaching 29% in 2022. This trend correlates interestingly with the average home prices in the neighborhood. In 2013, the average home price was $281,756, and it has since risen dramatically to $715,610 in 2022, marking a 154% increase over this period. This sharp rise in home prices likely contributed to the initial decline in homeownership, as affordability became a significant challenge for many potential buyers.

The relationship between federal interest rates and homeownership rates in Jefferson Park shows some correlation. As interest rates remained low from 2013 to 2015 (around 0.1%), the homeownership rate declined from 34% to 29%. This counterintuitive trend might be explained by rapidly rising home prices outpacing the benefits of low interest rates. However, as interest rates began to rise from 2016 onwards, reaching 1.68% in 2022, we see a stabilization and slight increase in homeownership rates, possibly due to buyers anticipating further rate increases and deciding to enter the market.

Renter percentages in Jefferson Park have generally mirrored the inverse of homeownership trends. The percentage of renters increased from 66% in 2013 to a peak of 78% in 2018, before slightly decreasing to 71% in 2022. This trend coincides with rising average rent prices. In 2013, the average rent was $979, which steadily increased to $1,528 in 2021, representing a 56% increase. However, there was a slight decrease to $1,381 in 2022. The high percentage of renters, coupled with rising rent prices, suggests a strong demand for rental properties in the area, possibly driven by the neighborhood's growing population, which increased from 2,630 in 2013 to 4,464 in 2022.