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Promenade, Edina: Home Values Double Amid Market Fluctuations
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
The Promenade neighborhood in Edina, Minnesota, has experienced significant changes in its housing market over the past decade. This community has seen fluctuations in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market dynamics.
From 2013 to 2022, homeownership rates in the Promenade neighborhood showed a general decline followed by a recent uptick. In 2013, 44% of residents were homeowners. This percentage dropped to its lowest point of 35% in 2020 before rebounding to 44% in 2022. Concurrently, average home prices in the neighborhood have shown a steady upward trend. In 2013, the average home price was $88,883. By 2022, this figure had increased dramatically to $226,450, representing a 154.8% increase over nine years.
The relationship between federal interest rates and homeownership rates in the Promenade neighborhood appears to follow expected patterns. For instance, when interest rates were at historic lows between 2020 and 2021 (0.38% and 0.08% respectively), homeownership rates began to recover from their lowest point. As interest rates rose sharply in 2022 to 1.68%, homeownership rates continued to increase, possibly due to residents rushing to purchase homes before rates climbed further.
Renter percentages in the Promenade neighborhood have generally mirrored the inverse of homeownership rates. The percentage of renters increased from 56% in 2013 to a peak of 65% in 2020, before declining to 56% in 2022. Average rent prices have shown an overall upward trend, albeit with some fluctuations. In 2013, the average rent was $1,199. This figure rose to $1,459 in 2018, dropped slightly to $1,285 in 2021, and then increased again to $1,435 in 2022. The population growth from 1,933 in 2013 to 2,504 in 2022 may have contributed to the overall increase in rental demand and prices.
Looking at the most recent data, average home prices in the Promenade neighborhood reached $228,125 in 2023, showing continued growth. However, in 2024, there was a slight decrease to $218,837. This dip coincides with significantly higher interest rates, which rose to 5.02% in 2023 and 5.33% in 2024. These higher rates may be dampening home buying activity and putting downward pressure on prices.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in the Promenade neighborhood may experience moderate growth, albeit at a slower pace than in recent years due to higher interest rates. Average rent prices are expected to continue their upward trajectory, driven by population growth and potential shifts from homeownership to renting if high interest rates persist.
In summary, the Promenade neighborhood has seen substantial increases in both average home prices and average rent prices over the past decade. Homeownership rates have fluctuated but have recently rebounded. The interplay between interest rates, housing prices, and ownership trends highlights the dynamic nature of this local real estate market. As the neighborhood continues to evolve, these trends will likely shape its demographic and economic landscape in the coming years.
