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Lakeside Acres: Rising Home Values and Shifting Ownership Trends in Flagstaff's Scenic Neighborhood
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Lakeside Acres, a charming neighborhood in Flagstaff, Arizona, has experienced significant changes in homeownership rates and property values over the past decade. This analysis explores the trends in average home prices, ownership rates, and rental market dynamics from 2013 to 2024, as well as future projections for this resilient community. Homeownership rates in Lakeside Acres have fluctuated considerably between 2013 and 2022. Starting at 81% in 2013, ownership peaked at 92% in 2015 before declining to 74% in 2019, where it remained stable through 2022. Concurrently, average home prices in the neighborhood demonstrated a substantial upward trend. From $521,477 in 2013, prices steadily increased to $745,560 in 2019, then surged to $1,295,132 by 2022, marking a remarkable 148% increase over the decade. Federal interest rates have played a significant role in shaping homeownership trends in Lakeside Acres. Between 2013 and 2016, when interest rates were at historic lows (0.09% to 0.40%), homeownership rates in the neighborhood remained relatively high, averaging around 85%. As interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, homeownership rates showed a slight downward trend, stabilizing at 74% in 2022. This pattern aligns with the general principle that lower interest rates tend to encourage homeownership due to more affordable financing options.
The rental market in Lakeside Acres has experienced inverse fluctuations to homeownership rates. Renter percentages rose from 19% in 2013 to 26% in 2022, with a low of 8% in 2015. Average rent prices have shown considerable variation, starting at $1,066 in 2013, peaking at $1,681 in 2014, then declining to $978 in 2019 before slightly rebounding to $984 in 2022. These fluctuations in rent prices and renter percentages may be influenced by the neighborhood's changing population, which decreased from 921 in 2013 to 604 in 2022. Recent data shows continued growth in property values, with average home prices in Lakeside Acres reaching $1,258,219 in 2023 and further increasing to $1,304,339 in 2024, representing a 3.7% year-over-year increase. During this period, federal interest rates rose to 5.02% in 2023 and 5.33% in 2024, potentially impacting homebuying affordability in the neighborhood. Looking ahead, predictive models forecast a continued upward trend in Lakeside Acres' property values, albeit at a more moderate pace. Given recent price appreciation and higher interest rates, annual increases of 3-5% in average home prices are anticipated over the next five years. Rent prices are expected to follow a similar trajectory, potentially increasing by 2-4% annually, as demand for rental properties may rise if higher interest rates deter some potential homebuyers. In conclusion, Lakeside Acres has demonstrated significant growth in property values over the past decade, with homeownership rates fluctuating but remaining relatively strong. The neighborhood has shown resilience in the face of changing economic conditions, maintaining its appeal to both homeowners and renters. As we look to the future, Lakeside Acres is positioned for continued, moderate growth in both home values and rental rates.
