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Neely Farms: Rising Home Values and Homeownership Resilience in Gilbert, Arizona
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
Neely Farms, located in Gilbert, Arizona, is a vibrant neighborhood that has experienced significant changes in its housing market over the past decade. This area has seen fluctuations in homeownership rates, alongside substantial increases in both average home prices and average rent prices. The neighborhood has maintained a relatively stable balance between owner-occupied and renter-occupied housing units, with a slight trend towards increased homeownership in recent years.
The relationship between homeownership percentages and average home prices in Neely Farms reveals an interesting trend. In 2013, the homeownership rate was 68% with an average home price of $196,351. As average home prices steadily increased, reaching $302,629 in 2019, the homeownership rate dipped to 60%. However, this trend reversed in subsequent years. By 2022, despite average home prices soaring to $514,291, the homeownership rate rebounded to 69%. This suggests that rising home values did not deter homeownership in the long term, possibly indicating strong local economic conditions or a desire for property investment in the area.
Federal interest rates have played a role in shaping homeownership trends in Neely Farms. The period from 2013 to 2016 saw historically low interest rates, ranging from 0.09% to 0.40%, which coincided with relatively stable homeownership rates around 63-66%. As interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), there was a slight decrease in homeownership. However, the sharp drop in interest rates in 2020 (0.38%) and 2021 (0.08%) corresponded with an increase in homeownership to 67%, suggesting that lower rates may have encouraged more buyers to enter the market.
The renter population in Neely Farms has shown some variability in relation to average rent prices. In 2013, with 32% of units being renter-occupied, the average rent was $1,247. As the renter percentage increased to 37% in 2015, average rent rose to $1,393. The renter percentage remained stable at 37% through 2017, with average rent reaching $1,435. Interestingly, as the renter percentage decreased to 31% in 2022, average rent prices continued to climb, reaching $1,871. This suggests that despite higher rents, demand for rental properties remained strong, possibly due to the neighborhood's desirability or overall population growth.
In 2023 and 2024, Neely Farms experienced a slight correction in the housing market. The average home price decreased from $514,291 in 2022 to $486,208 in 2023, before rebounding slightly to $502,968 in 2024. This occurred as federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, potentially impacting home affordability and buyer demand.
Looking ahead, predictive models suggest that average home prices in Neely Farms may continue to rise, but at a more moderate pace. Over the next five years, average home prices could potentially reach around $575,000 to $600,000, assuming economic conditions remain stable and interest rates don't fluctuate dramatically. Average rent prices are also expected to increase, potentially reaching $2,200 to $2,400 per month within the same timeframe, driven by ongoing demand for rental properties in the area.
In summary, Neely Farms has demonstrated resilience in its housing market, with homeownership rates rebounding despite significant increases in average home prices. The neighborhood has maintained a balance between owner-occupied and renter-occupied units, with both sectors showing strength. The recent market correction and higher interest rates may lead to more moderate growth in the coming years, but the overall trend points towards continued appreciation in both home values and rental rates.
