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Prospect Neighborhood: Rising Home Values and Stable Ownership Amid Interest Rate Fluctuations
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
The Prospect neighborhood in Jonesboro, Arkansas, has experienced significant changes in its housing market over the past decade. This area has seen fluctuations in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market dynamics. Homeownership rates in Prospect have shown a general decline from 2013 to 2022, with some fluctuations. In 2013, the homeownership rate was 64%, which increased slightly to 67% in 2014. However, by 2020, it had dropped to 56%, before recovering to 63% in 2022. This trend coincides with changes in average home prices, which have steadily increased over the same period. In 2013, the average home price was $139,503, rising to $214,802 by 2022, representing a substantial 54% increase over nine years.
The relationship between federal interest rates and homeownership rates in Prospect shows some correlation. As interest rates remained low from 2013 to 2016 (ranging from 0.11% to 0.4%), homeownership rates remained relatively stable, hovering around 64-65%. However, as interest rates began to rise more significantly from 2017 onwards, reaching 1.68% in 2022, homeownership rates showed more volatility, dropping to a low of 56% in 2020 before rebounding.
Renter percentages in Prospect have generally increased as homeownership rates declined. In 2013, 36% of residents were renters, which increased to 44% by 2020, before decreasing slightly to 37% in 2022. Average rent prices have shown an upward trend, rising from $860 in 2013 to $967 in 2022, a 12.4% increase. The population growth from 4,833 in 2013 to 6,135 in 2022 may have contributed to increased demand for rental properties, potentially driving up average rent prices.
In 2023 and 2024, the housing market in Prospect continued to evolve. The average home price reached $220,735 in 2023, showing a slight increase from 2022. However, in 2024, there was a marginal decrease to $219,862. This slight decline coincides with significantly higher federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024, potentially impacting home affordability and demand.
Looking ahead, predictive models suggest that average home prices in Prospect may continue to rise moderately over the next five years, albeit at a slower pace than observed in the past decade. This projection takes into account the current high interest rates, which could temper rapid price growth. Average rent prices are also expected to increase gradually, driven by population growth and potential shifts towards renting if high interest rates persist, making homeownership less accessible for some residents.
In summary, the Prospect neighborhood has experienced a general trend of increasing average home and rent prices, with fluctuating homeownership rates. The interplay between federal interest rates, local population growth, and broader economic factors has shaped these trends. As the community continues to grow and adapt to changing economic conditions, the housing market in Prospect is likely to remain dynamic, with potential for continued price appreciation in both the home buying and rental markets.
