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Nacogdoches: Rising Home Values and Shifting Ownership in Texas' Oldest Town
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
Nacogdoches, Texas, known as the oldest town in Texas, offers a unique blend of history and modern living. This city has experienced fluctuating homeownership rates and steady increases in average home prices over the past decade. The rental market has also seen changes, with average rent prices showing an overall upward trend despite some fluctuations.
The homeownership rate in Nacogdoches has remained relatively stable, with a slight decline from 47% in 2013 to 45% in 2022. During this same period, average home prices have shown a consistent upward trend. In 2013, the average home price was $127,986, which steadily increased to $192,412 by 2022, representing a significant 50.3% increase over nine years. This trend suggests that while home prices have risen, it hasn't dramatically affected the proportion of homeowners in the city.
Federal interest rates have played a role in homeownership trends in Nacogdoches. From 2013 to 2016, when interest rates were extremely low (ranging from 0.11% to 0.40%), the homeownership rate remained relatively stable at around 45-47%. As interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), the homeownership rate held steady at 44-45%. This stability in homeownership despite rising interest rates and home prices suggests other factors, such as local economic conditions or housing policies, may have influenced homeownership rates in Nacogdoches.
The rental market in Nacogdoches has shown some interesting trends. The percentage of renters increased from 53% in 2013 to 55% in 2022. Average rent prices have fluctuated over this period, starting at $812 in 2013, dropping to $787 in 2017, then rising to $881 in 2021, before decreasing again to $803 in 2022. These fluctuations in rent prices, coupled with the slight increase in the proportion of renters, suggest a dynamic rental market that has remained relatively affordable despite the overall upward trend in housing costs.
In 2023 and 2024, Nacogdoches has continued to see growth in average home prices. The average home price reached $202,354 in 2023 and further increased to $203,700 in 2024. This represents a 5.9% increase from 2022 to 2024. Concurrently, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024, which could potentially impact future homeownership rates and housing market dynamics.
Looking ahead, based on the historical trends and current market conditions, we can expect the average home prices in Nacogdoches to continue their upward trajectory over the next five years, albeit potentially at a slower rate due to higher interest rates. Average rent prices may also continue to increase, driven by the growing population and the slightly increasing proportion of renters. However, the rate of increase may be moderated by the city's efforts to maintain affordability for its residents.
In summary, Nacogdoches has demonstrated a resilient housing market with steadily increasing home values and a slight shift towards renting. The city has maintained a relatively stable balance between homeowners and renters despite rising home prices and fluctuating interest rates. As Nacogdoches continues to grow and evolve, monitoring these housing trends will be crucial for understanding the city's economic health and planning for future development.
