Loading Content...
McKinney's Housing Market: Soaring Home Values Amidst Steady Ownership
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
McKinney, Texas, a vibrant city in the Dallas-Fort Worth metroplex, has experienced significant growth and dynamic shifts in its housing market over the past decade. Known for its historic downtown and modern amenities, McKinney has seen fluctuations in homeownership rates, alongside substantial increases in both average home prices and average rent prices. This analysis will explore these trends and their interrelationships from 2013 to 2022.
The homeownership rate in McKinney has shown some variability over the years, ranging from a high of 68% in 2015 and 2016 to a low of 62% in 2019 and 2022. Concurrently, average home prices have experienced a remarkable upward trajectory. In 2013, the average home price was $217,545, which more than doubled to $514,247 by 2022. This represents a staggering 136% increase over nine years. Despite this significant rise in home prices, the homeownership rate remained relatively stable, only decreasing slightly from 66% in 2013 to 62% in 2022.
The relationship between federal interest rates and homeownership rates in McKinney presents an interesting dynamic. From 2013 to 2015, as interest rates remained low (0.11% to 0.13%), homeownership increased from 66% to 68%. However, as interest rates began to rise more significantly from 2016 onwards, reaching 1.68% in 2022, homeownership rates showed some decline, dropping to 62% by 2022. This trend aligns with the general expectation that lower interest rates tend to encourage homeownership due to more affordable financing options.
Renter percentages in McKinney have inversely mirrored homeownership rates, ranging from 32% to 38% between 2013 and 2022. Average rent prices have shown a consistent upward trend during this period. In 2013, the average rent was $1,135, which increased to $1,877 by 2022, representing a 65% rise. Notably, the most significant jump in average rent occurred between 2021 and 2022, with an increase from $1,530 to $1,877, a 22.7% surge in a single year. This sharp increase coincided with a population growth from 202,680 in 2021 to 207,506 in 2022, suggesting that increased demand for rental properties may have contributed to the rent spike.
Looking at the most recent data, the average home price in McKinney slightly decreased to $513,842 in 2023 before rising again to $522,523 in 2024. This represents a modest 1.7% increase from 2023 to 2024. Concurrently, federal interest rates have continued to rise, reaching 5.02% in 2023 and 5.33% in 2024, which are significantly higher than the rates seen in the previous decade.
Applying predictive models to forecast 5-year trends, we can anticipate continued growth in both average home prices and average rent prices in McKinney. Based on historical data and current market conditions, average home prices could potentially reach around $600,000 by 2029. Average rent prices are projected to continue their upward trajectory, potentially surpassing $2,200 per month within the same timeframe.
In summary, McKinney has experienced substantial growth in both average home prices and average rent prices from 2013 to 2022. Despite the significant increase in home prices, homeownership rates have remained relatively stable, only showing a slight decline. The rental market has seen consistent growth in both demand and prices, with a notable surge in recent years. The relationship between federal interest rates and homeownership rates aligns with expected trends, with higher rates coinciding with slightly lower homeownership. As McKinney continues to grow, these housing market dynamics will likely play a crucial role in shaping the city's future development and demographic composition.
