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Powell Estates: Rising Home Values and Stable Ownership in Mesa, 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
Powell Estates, a neighborhood in Mesa, Arizona, has experienced significant changes in its housing market over the past decade. This area has maintained high homeownership rates while seeing substantial growth in average home prices and notable increases in average rent prices. These trends reflect broader economic shifts and local market dynamics.
The relationship between homeownership percentages and average home prices in Powell Estates reveals interesting patterns. In 2013, the homeownership rate was 84%, with an average home price of $115,701. As average home prices steadily increased, reaching $230,839 in 2019, the homeownership rate experienced some fluctuation but remained relatively high at 81%. By 2022, despite a significant rise in average home prices to $389,288, the homeownership rate maintained a strong 80%. This suggests that while rising home prices might typically discourage ownership, other factors have supported continued high rates of homeownership in Powell Estates.
Federal interest rates have played a role in shaping homeownership trends in Powell Estates. From 2013 to 2016, when interest rates were exceptionally low (ranging from 0.11% to 0.40%), homeownership rates in the neighborhood remained above 70%. As interest rates began to rise more substantially from 2017 (1%) to 2019 (2.16%), homeownership rates in Powell Estates actually increased from 72% to 81%. This counter-intuitive trend suggests that local factors may have had a stronger influence on homeownership than national interest rates during this period.
Renter percentages and average rent prices in Powell Estates have shown some correlation. In 2013, with 16% of residents renting, the average rent was $782. By 2015, as the renter percentage increased to 29%, average rent rose to $999. However, in subsequent years, the relationship became less clear. For instance, in 2018, despite a decrease in the renter percentage to 19%, average rent jumped to $1,307. By 2022, with 20% of residents renting, the average rent stood at $1,181, showing a slight decrease from its peak but still significantly higher than a decade earlier.
In 2023 and 2024, Powell Estates experienced a slight dip in average home prices, with values of $374,505 and $381,099 respectively. This occurred despite a significant increase in federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024. These figures suggest a potential cooling in the local housing market, possibly influenced by the higher cost of borrowing.
Looking ahead, predictive models forecast continued growth in both average home prices and average rent prices over the next five years, albeit at a more moderate pace. Average home prices are expected to increase by approximately 3-4% annually, potentially reaching around $450,000 by 2029. Average rent prices are projected to rise by 2-3% per year, potentially surpassing $1,300 by 2029.
In summary, Powell Estates has maintained a high rate of homeownership despite significant increases in average home prices over the past decade. The neighborhood has shown resilience in the face of rising interest rates, with local factors appearing to play a stronger role in housing market dynamics than national trends. While both average home prices and average rent prices have seen substantial growth, recent data suggests a potential stabilization in the market. The forecast indicates continued but more moderate growth in both sectors, reflecting the ongoing desirability of the neighborhood and broader economic factors.
