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New West, Garland: Rising Home Values 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
New West, a neighborhood in Garland, Texas, has experienced significant changes in homeownership rates and housing prices over the past decade. The area has seen a general trend of decreasing homeownership percentages, while average home prices and average rent have steadily increased. This analysis examines the demographic and economic shifts in New West from 2013 to 2024, focusing on homeownership rates, housing prices, and rental trends.
The homeownership rate in New West has declined substantially since 2013. In 2013, 40% of residents owned their homes, but by 2022, this figure had dropped to 26%. This decrease in homeownership coincided with a substantial increase in average home prices. In 2013, the average home price was $84,051, and by 2022, it had risen dramatically to $252,088, representing a 200% increase over nine years.
Federal interest rates have played a role in homeownership trends. From 2013 to 2016, interest rates remained very low, ranging from 0.11% to 0.40%. During this period, homeownership rates in New West fluctuated but generally trended downward, from 40% in 2013 to 31% in 2016. As interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), homeownership rates continued to decline, reaching 25% in 2019. This suggests that despite historically low interest rates, other factors were influencing the decrease in homeownership in the neighborhood.
The renter population in New West has grown considerably, mirroring the decline in homeownership. In 2013, 60% of residents were renters, and by 2022, this figure had increased to 74%. This rise in the renter population coincided with an increase in average rent prices. The average rent in 2013 was $914, and by 2022, it had risen to $1,491, representing a 63% increase. The population of New West also grew during this period, from 2,670 in 2013 to 2,848 in 2022, potentially contributing to the increased demand for rental properties and the subsequent rise in rent prices.
In 2023 and 2024, the average home prices in New West continued to rise, albeit at a slower pace. The average home price in 2023 was $257,221, and in 2024 it reached $258,293. This represents a modest increase of 0.42% from 2023 to 2024, compared to the more substantial increases seen in previous years. Notably, federal interest rates also increased significantly during this period, reaching 5.02% in 2023 and 5.33% in 2024, which may have contributed to the slower growth in home prices.
Looking ahead, based on the observed trends, it's projected that average home prices in New West will continue to increase over the next five years, but at a more moderate pace than seen in the past decade. Average rent prices are also expected to rise, driven by the growing renter population and increased demand for rental properties. However, the rate of increase may slow down as the market adjusts to the higher interest rate environment.
In summary, New West has experienced a significant shift from homeownership to renting over the past decade, accompanied by substantial increases in both average home prices and average rent. The neighborhood has shown resilience in terms of property values, with consistent growth despite changing economic conditions. The coming years are likely to see continued, albeit more moderate, increases in both home prices and rent, as the local real estate market adapts to evolving economic factors and demographic changes.
