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Parklawn's Housing Market: Rising Values and Shifting Ownership in Edina's Vibrant Neighborhood
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
Parklawn, a vibrant neighborhood in Edina, Minnesota, has experienced significant changes in its housing market over the past decade. This densely populated area has seen a general trend of increasing average home prices and rent prices, while homeownership rates have fluctuated. The homeownership rate in Parklawn has shown notable variations from 2013 to 2022, starting at 23% in 2013, peaking at 31% in 2019, and decreasing to 21% by 2022. Interestingly, this trend doesn't directly correlate with the average home prices, which have shown a consistent upward trajectory. The average home price in Parklawn rose from $79,378 in 2010 to $149,958 in 2022, representing an impressive 89% increase over this period.
Federal interest rates have played a significant role in shaping homeownership trends in Parklawn. During periods of low interest rates, such as from 2010 to 2015 when rates were below 0.2%, homeownership rates generally increased. For instance, homeownership rose from 23% in 2013 to 29% in 2017. However, as interest rates began to rise from 2016 onwards, reaching 1.68% in 2022, we see a corresponding decline in homeownership rates, dropping to 21% by 2022.
The rental market in Parklawn has also experienced notable changes. The percentage of renters increased from 69% in 2019 to 79% in 2022. This rise in renter occupancy coincides with an increase in average rent prices. The average rent in Parklawn rose from $1,260 in 2013 to $1,693 in 2022, a 34% increase. This trend suggests a growing demand for rental properties in the area, possibly driven by the rising home prices that may be pricing out potential buyers.
In 2023 and 2024, we observe a slight dip in average home prices in Parklawn. The average home price decreased from $149,958 in 2022 to $149,810 in 2023, and further to $148,962 in 2024. This slight decline occurs against a backdrop of significantly higher interest rates, which reached 5.02% in 2023 and 5.33% in 2024. These higher interest rates may be contributing to a cooling effect on the housing market.
Looking ahead, based on the historical trends and current market conditions, we can project potential scenarios for the next five years. Average home prices in Parklawn may experience a period of stabilization or slight decline due to the current high interest rates. However, if interest rates begin to decrease, we could see a resurgence in home prices. For average rent prices, the trend suggests continued growth, potentially reaching around $1,900-$2,000 by 2029, assuming the current trajectory persists.
In summary, Parklawn has experienced a dynamic housing market over the past decade. The neighborhood has seen substantial increases in both average home prices and average rent prices, while homeownership rates have fluctuated in response to changing economic conditions and interest rates. The recent slight decline in home prices, coupled with high interest rates, suggests a potential shift in the market dynamics that will be important to monitor in the coming years.
