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McKinney, Austin: Home Values Surge Amidst Shifting Ownership Trends
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
McKinney, a neighborhood in Austin, Texas, has experienced significant changes in its real estate market and demographics over the past decade. The area has seen a substantial increase in homeownership rates and property values, reflecting broader economic trends and local development patterns.
From 2013 to 2022, McKinney's homeownership rate increased from 58% to 69%. This rise coincided with a remarkable increase in average home prices, which more than tripled from $112,856 in 2013 to $400,169 in 2022, representing a 254% increase over nine years.
The relationship between federal interest rates and homeownership rates in McKinney reveals an interesting pattern. As interest rates remained low between 2013 and 2016, ranging from 0.1% to 0.4%, homeownership rates increased from 58% to 63%. This aligns with the general trend of lower interest rates encouraging homeownership due to more affordable financing options. However, even as interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, homeownership in McKinney continued to increase, reaching 69% in 2022. This suggests that other local factors, such as job growth or neighborhood desirability, may have played a significant role in driving homeownership.
Renter percentages in McKinney have inversely mirrored the homeownership trend, decreasing from 42% in 2013 to 31% in 2022. Despite this decline in the renter population, average rent prices have generally increased. In 2013, the average rent was $1,170, which rose to $1,312 by 2022, a 12% increase. However, rent prices have not shown a consistent upward trend, with fluctuations observed year to year. For instance, there was a significant drop in average rent to $1,025 in 2017, followed by a recovery in subsequent years.
The most recent data shows a decrease in average home prices to $363,589 in 2023, a 9.1% drop from the 2022 peak. This trend continued into 2024, with prices further declining to $349,656. This decline coincides with a sharp increase in federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024. These higher interest rates likely contributed to cooling the housing market, making mortgages more expensive and potentially dampening demand.
Applying predictive models to forecast 5-year trends, average home prices in McKinney may stabilize or show modest growth as the market adjusts to higher interest rates. Average rent prices are expected to continue their gradual upward trend, potentially reaching around $1,500 by 2029, driven by ongoing demand for rental properties in this desirable Austin neighborhood.
In summary, McKinney has experienced a significant increase in homeownership and average home prices over the past decade, with a recent cooling in the market coinciding with rising interest rates. The rental market has shown resilience, with generally increasing prices despite a decreasing renter population. These trends reflect the neighborhood's attractiveness and the complex interplay of local and national economic factors shaping its real estate landscape.
