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Rising Home Values and Declining Ownership in Tempe's McClintock Manor
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
McClintock Manor, located in Tempe, Arizona, has experienced significant changes in its housing market over the past decade. This neighborhood has shown resilience in homeownership rates and substantial growth in property values, reflecting broader economic trends and local market dynamics. The homeownership rate in McClintock Manor has fluctuated over the years, demonstrating an overall trend towards stability. In 2013, the neighborhood had a 73% homeownership rate, which decreased to 63% by 2017. However, the rate has since stabilized, reaching 68% in 2022. This trend coincides with the evolution of average home prices in the area. While early data is limited, there was a significant increase from $433,493 in 2020 to $630,696 in 2022, representing a 45.5% rise over two years.
The relationship between federal interest rates and homeownership rates in McClintock Manor follows an expected pattern. From 2013 to 2017, when homeownership rates were declining, federal interest rates gradually increased from 0.11% to 1%. This inverse relationship is typical, as higher interest rates tend to make mortgages less affordable, potentially discouraging homeownership.
Renter percentages in McClintock Manor have shown an inverse relationship to homeownership rates. The renter population increased from 27% in 2013 to 37% in 2017, before settling at 32% in 2022. Interestingly, average rent prices have not always moved in tandem with renter percentages. While the renter percentage was increasing, average rent decreased from $1,541 in 2013 to $1,379 in 2017. By 2022, average rent had risen to $1,442, despite a slight decrease in the renter percentage. This suggests that other factors, such as overall housing demand and local economic conditions, also significantly influence rent prices.
Recent data shows that average home prices in McClintock Manor slightly decreased from $630,696 in 2022 to $625,613 in 2023, followed by an increase to $651,646 in 2024. This recent uptick occurs despite high federal interest rates of 5.02% in 2023 and 5.33% in 2024, indicating strong local demand for housing that outweighs the potential dampening effect of high interest rates.
Predictive models for 5-year trends anticipate that average home prices in McClintock Manor will continue to rise, albeit at a more moderate pace than in recent years. The rate of increase may slow due to the current high interest rate environment, but strong local demand is likely to sustain growth. Average rent prices are also expected to increase gradually, driven by the area's desirability and potential shifts in the rental market as some prospective buyers remain in the rental market due to high home prices and interest rates.
In conclusion, McClintock Manor has demonstrated resilience and growth in its housing market. The neighborhood has maintained a relatively stable homeownership rate in recent years, despite significant increases in average home prices. The rental market has shown adaptability, with rent prices not always directly correlating with renter percentages. As we look to the future, McClintock Manor is poised for continued, albeit more moderate, growth in both home prices and rent, reflecting its enduring appeal as a residential community in Tempe.
