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Mahogany, Mesa: A Neighborhood of High Homeownership and Rising Home Values
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
Mahogany, a neighborhood in Mesa, Arizona, showcases a unique blend of suburban charm and modern living. This community has experienced significant growth and changes in its real estate landscape over the past decade. With a consistently high rate of homeownership and relatively stable average rent prices, Mahogany presents an interesting case study in neighborhood development.
The homeownership rate in Mahogany has remained remarkably high throughout the years, rarely dipping below 90%. In 2013, the homeownership rate stood at 95%, and by 2022, it had increased to an impressive 99%. This trend suggests a strong preference for homeownership in the neighborhood. Interestingly, while homeownership rates have fluctuated slightly over the years, they have generally remained above 90%, indicating a stable and committed resident base.
The relationship between federal interest rates and homeownership rates in Mahogany is noteworthy. Despite the fluctuations in federal interest rates over the years, the neighborhood has maintained its high homeownership rate. For instance, in 2013, when the federal interest rate was 0.11%, the homeownership rate was 95%. By 2022, with interest rates rising to 1.68%, the homeownership rate had increased to 99%. This suggests that factors beyond interest rates, such as the neighborhood's desirability and local economic conditions, may play a significant role in driving homeownership in Mahogany.
Renter percentages in Mahogany have remained consistently low, inversely mirroring the high homeownership rates. In 2013, the renter-occupied rate was just 3%, and it fluctuated slightly over the years, reaching a peak of 6% in 2014 and 2015 before decreasing to 1% in 2022. The average rent price has shown remarkable stability, starting at $1,750 in 2013 and maintaining that level through 2022, with only minor fluctuations in between. This stability in rent prices, combined with the low renter percentage, suggests a limited but steady rental market in the neighborhood.
Looking at the most recent data, the average home price in Mahogany for 2023 was $981,073, which increased to $987,820 in 2024. This represents a modest growth of about 0.69% in just one year. Concurrently, the federal interest rate rose from 5.02% in 2023 to 5.33% in 2024, indicating a tightening monetary policy environment. Despite this increase in interest rates, the neighborhood's home values continued to appreciate, albeit at a slower pace.
Applying predictive models to forecast 5-year trends, we can anticipate continued growth in average home prices in Mahogany, albeit at a more moderate pace than in previous years. The stability of the rental market suggests that average rent prices are likely to remain relatively steady, with potential for slight increases in line with inflation and overall market conditions. However, these projections should be considered in the context of broader economic factors and local market dynamics.
In summary, Mahogany presents a picture of a highly stable neighborhood with an overwhelming preference for homeownership. The consistently high homeownership rates, coupled with steady average rent prices and appreciating home values, indicate a robust and desirable real estate market. The neighborhood's ability to maintain high homeownership rates even in the face of rising interest rates suggests a strong underlying demand for housing in this area. As Mahogany continues to evolve, it will be interesting to observe how these trends develop, particularly in light of changing economic conditions and housing market dynamics.
