Loading Content...
Passey Place: Rising Home Values and Shifting Ownership in Mesa's Rental-Dominated Neighborhood
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Passey Place, located in Mesa, Arizona, is a neighborhood that has experienced significant demographic shifts over the past decade. This area has seen fluctuations in homeownership rates and rental prices, reflecting broader economic trends and local market conditions. The neighborhood has generally maintained a higher percentage of renters compared to owners, with average rent prices showing an upward trajectory in recent years.
The homeownership rate in Passey Place has shown a general upward trend from 2013 to 2022, albeit with some fluctuations. In 2013, the homeownership rate stood at 23%, gradually increasing to 39% by 2022. This rise in homeownership coincided with changes in average home prices, though specific price data for earlier years is not available. The increase in homeownership rates suggests a growing interest in long-term residency in the neighborhood, possibly driven by factors such as community development or improved local amenities.
Federal interest rates have played a significant role in homeownership trends. From 2013 to 2016, when interest rates were historically low (ranging from 0.11% to 0.4%), homeownership in Passey Place increased from 23% to 28%. This aligns with the general trend of lower interest rates encouraging homeownership due to more affordable mortgage options. As interest rates began to rise more significantly from 2017 onwards, the homeownership rate continued to increase, reaching 39% by 2022, indicating other factors may have been influencing home buying decisions in the area.
Renter percentages in Passey Place have correspondingly decreased from 76% in 2013 to 61% in 2022, inversely mirroring the rise in homeownership. Average rent prices have shown a general upward trend during this period. In 2013, the average rent was $694, increasing to $1,081 by 2022, representing a 55.8% increase over nine years. This rise in rent prices occurred despite fluctuations in the neighborhood's population, which decreased from 1,812 in 2013 to 1,377 in 2022. The increase in rent prices, even with a declining population, suggests strong demand for rental properties in the area or overall market appreciation.
In 2023 and 2024, average home prices in Passey Place reached $483,217 and $484,422 respectively, indicating a slight increase in property values. These figures coincide with federal interest rates of 5.02% in 2023 and 5.33% in 2024, which are significantly higher than the rates seen in the previous decade. This combination of rising home prices and higher interest rates could potentially impact future homeownership trends in the neighborhood.
Looking ahead, predictive models suggest that average home prices in Passey Place may continue to rise moderately over the next five years, potentially reaching around $500,000 by 2029. Average rent prices are also expected to maintain their upward trajectory, potentially exceeding $1,200 per month within the same timeframe. These projections are based on historical trends and current market conditions but may be influenced by various economic factors and local market dynamics.
In summary, Passey Place has experienced a notable increase in homeownership rates over the past decade, accompanied by rising average rent prices. The neighborhood has maintained a majority of renters despite these changes. The recent higher interest rates and steadily increasing home prices suggest a potentially challenging environment for new homebuyers, which could influence future homeownership trends in the area. The consistent rise in both home values and rent prices indicates a strong overall demand for housing in Passey Place, reflecting its attractiveness as a residential area in Mesa.
