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McKay Landing: Rising Home Values and High Ownership in Broomfield's Growing 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
McKay Landing, a suburban neighborhood in Broomfield, Colorado, has experienced significant growth in its housing market over the past decade. This analysis examines trends in homeownership, average home prices, and rent prices, providing insights into the neighborhood's real estate dynamics. The homeownership rate in McKay Landing has remained consistently high, ranging from 83% to 93% between 2013 and 2022. This strong tendency towards homeownership is accompanied by a substantial increase in average home prices. In 2010, the average home price was $319,644, which more than doubled to $755,836 by 2022, representing a 136% increase over 12 years. Despite the significant rise in home prices, the homeownership rate in McKay Landing has remained relatively stable, even showing a slight increase from 85% in 2013 to 89% in 2022. This suggests that the neighborhood has maintained its appeal to homeowners, possibly due to its desirable location or amenities, even as property values appreciated considerably.
Federal interest rates have influenced homeownership trends in McKay Landing. From 2010 to 2021, historically low interest rates, ranging from 0.08% to 2.16%, likely contributed to the sustained high homeownership rates by making mortgage financing more accessible and affordable. The slight dip in homeownership from 93% in 2020 to 89% in 2022 coincides with the beginning of interest rate increases, which reached 1.68% in 2022.
Renter percentages in McKay Landing have remained relatively low, fluctuating between 7% and 17% from 2013 to 2022. Average rent prices, however, have shown a significant upward trend. In 2013, the average rent was $1,764, which increased to $2,379 by 2022, representing a 35% increase over nine years. This rise in rent prices occurred despite the relatively stable and low percentage of renters, suggesting strong demand for the limited rental properties available in the neighborhood.
As of 2024, the average home price in McKay Landing stands at $747,017, showing a slight decrease from the 2022 peak of $755,836. This recent stabilization in home prices occurs in the context of higher federal interest rates, which have risen to 5.33% in 2024. The higher interest rates may be contributing to a cooling effect on home price appreciation, potentially making homeownership more challenging for new buyers.
Predictive models suggest that average home prices in McKay Landing may continue to experience moderate growth over the next five years, albeit at a slower pace than the rapid appreciation seen in the previous decade. Average rent prices are also expected to continue their upward trajectory, driven by the neighborhood's desirability and limited rental inventory. However, the rate of increase for both home prices and rents may be tempered by broader economic factors and interest rate trends.
In summary, McKay Landing has demonstrated a robust and stable housing market characterized by high homeownership rates and significant appreciation in property values. The neighborhood has maintained its appeal to homeowners despite rising prices, while also seeing substantial increases in rental costs. As the market adjusts to higher interest rates and evolving economic conditions, McKay Landing is poised to remain a desirable residential area with a strong preference for homeownership and continuing, though potentially moderated, growth in real estate values.
