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Rising Home Values and Declining Ownership in Pasadena, El Paso: A Decade of Change
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Pasadena, a neighborhood in El Paso, Texas, has experienced significant changes in its housing market over the past decade. This analysis examines the fluctuations in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market dynamics.
The homeownership rate in Pasadena has shown a notable decline over the years. In 2013, 53% of residents owned their homes, but by 2022, this figure had dropped to 44%. Conversely, the percentage of renters increased from 47% in 2013 to 56% in 2022. This shift towards renting coincided with a substantial rise in average home prices. In 2013, the average home price in Pasadena was $82,493. By 2022, it had surged to $133,670, representing a 62% increase over nine years.
The relationship between federal interest rates and homeownership rates in Pasadena follows expected patterns. As interest rates remained low from 2013 to 2016, hovering around 0.1%, homeownership rates actually increased slightly from 53% to 57%. However, as interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, homeownership rates declined to 44%. This trend aligns with the general principle that lower interest rates tend to encourage homeownership due to more affordable financing options.
Renter percentages and average rent prices in Pasadena have shown an interesting correlation. As the renter population grew from 47% in 2013 to 56% in 2022, average rent prices also increased significantly. In 2013, the average rent was $387, which rose to $572 by 2022, marking a 47.8% increase. This upward trend in rent prices occurred despite fluctuations in the neighborhood's population, which ranged from a low of 5,543 in 2019 to a high of 6,807 in 2014.
In 2023 and 2024, Pasadena's housing market continued its upward trajectory. The average home price reached $143,993 in 2023 and further increased to $152,722 in 2024, representing a 14.3% growth over two years. Concurrently, federal interest rates climbed to 5.02% in 2023 and 5.33% in 2024, potentially impacting homebuying decisions in the neighborhood.
Looking ahead, predictive models suggest that Pasadena's housing market will likely continue its growth trend over the next five years. Average home prices are projected to increase by approximately 3-5% annually, potentially reaching around $175,000 to $185,000 by 2029. Average rent prices are expected to follow a similar pattern, with estimated increases of 2-4% per year, potentially reaching $630 to $650 by 2029.
In summary, Pasadena has experienced a significant shift from homeownership to renting over the past decade, accompanied by substantial increases in both average home prices and rent prices. The neighborhood's housing market has shown resilience and growth, even in the face of fluctuating population numbers and rising interest rates. As Pasadena continues to evolve, these trends suggest a dynamic and potentially competitive housing market in the coming years.
