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Landon Branch, Waco: Home Values Double Amid Interest Rate Fluctuations
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
Landon Branch, a vibrant neighborhood in Waco, Texas, has experienced significant changes in its housing market over the past decade. Known for its diverse community and suburban charm, this area has seen notable shifts in homeownership rates and property values, reflecting broader economic trends and local market dynamics. The homeownership rate in Landon Branch has shown a slight upward trend since 2013. Starting at 59% in 2013, it increased to 60% by 2022. This modest rise in homeownership coincided with a substantial increase in average home prices. In 2013, the average home price was $116,231, which more than doubled to $271,193 by 2022. This significant appreciation in property values indicates a growing demand for homes in the area, potentially driven by neighborhood improvements, economic growth in Waco, or broader market trends. The relationship between federal interest rates and homeownership rates in Landon Branch follows expected patterns. As interest rates remained low between 2013 and 2016 (ranging from 0.11% to 0.40%), homeownership rates stayed relatively stable around 58-59%. However, even as interest rates began to rise more significantly from 2017 onwards, reaching 1.68% in 2022, homeownership rates ultimately increased to 60% by 2022. This suggests that local economic conditions or housing market dynamics may have played a role in supporting homeownership despite rising interest rates.
Rental trends in Landon Branch have shown interesting patterns alongside changes in average rent prices. The percentage of renters decreased slightly from 41% in 2013 to 40% in 2022. During this period, average rent prices experienced notable fluctuations. Starting at $1,098 in 2013, rents peaked at $1,544 in 2017 before declining to $1,172 in 2022. These fluctuations in rent prices, coupled with the relatively stable renter percentage, suggest a complex interplay of factors affecting the rental market, potentially including changes in housing supply, local economic conditions, and demographic shifts.
Recent data shows that average home prices in Landon Branch continued to rise, reaching $275,988 in 2023 and $277,729 in 2024. This represents a modest increase from 2022 levels, indicating a slowing but still positive growth in property values. Concurrently, federal interest rates have increased significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homeownership trends and property values in the neighborhood.
Applying predictive models to forecast 5-year trends, it is anticipated that average home prices in Landon Branch will continue to appreciate, albeit at a more moderate pace than seen in recent years. The rate of increase may slow due to higher interest rates, potentially reaching around $300,000 by 2029. Average rent prices are expected to stabilize and potentially increase slightly, possibly reaching $1,300-$1,400 per month by 2029, as demand for rental properties may increase if higher interest rates deter some potential homebuyers.
In summary, Landon Branch has demonstrated resilience and growth in its housing market over the past decade. The neighborhood has seen a slight increase in homeownership rates despite rising home prices, suggesting strong local demand. The rental market has remained relatively stable, with fluctuating rent prices. Looking ahead, while the pace of growth may moderate due to higher interest rates, the overall trend for both home values and rent prices is expected to remain positive, reflecting the continued attractiveness of Landon Branch as a residential area in Waco.
