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Rising Home Values and Ownership: Crown Pointe's Decade of Change
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
DATA SOURCE
United States Census Bureau: American Community Survey Data (ACS)
Zillow: Zillow Home Value Index (ZHVI)
Crown Pointe, a vibrant neighborhood in Lincoln, Nebraska, has experienced significant changes in homeownership rates and housing prices over the past decade. The area has seen a notable increase in owner-occupied homes, rising from 58% in 2013 to 70% in 2022. Concurrently, average home prices have shown a steady upward trend, while average rent prices have fluctuated but generally increased over time.
The relationship between homeownership rates and average home prices in Crown Pointe has been marked by parallel growth. In 2013, when the owner-occupied rate was 58%, the average home price was $261,616. As homeownership increased to 64% in 2019, average home prices rose to $326,516. This trend continued, with homeownership reaching 70% in 2022 and average home prices climbing to $419,655. This consistent upward movement suggests a strong correlation between increased homeownership and rising property values in the neighborhood.
Federal interest rates have played a significant role in shaping homeownership trends in Crown Pointe. The period from 2013 to 2016 saw historically low interest rates, ranging from 0.11% to 0.40%. During this time, homeownership in the neighborhood remained relatively stable, between 55% and 58%. However, as interest rates began to rise more significantly from 2017 (1.00%) to 2019 (2.16%), homeownership in Crown Pointe actually increased from 58% to 64%. This trend continued even as interest rates dropped again in 2020 and 2021, with homeownership reaching 71% by 2021.
Renter percentages in Crown Pointe have shown an inverse relationship to homeownership rates, decreasing from 36% in 2014 to 30% in 2022. Interestingly, average rent prices have generally increased despite this decline in the renter population. In 2013, the average rent was $961, rising to $967 in 2019, and reaching $1,019 in 2022. This trend suggests that while fewer residents are renting, those who do are paying higher prices, possibly due to improved rental property quality or increased demand for the remaining rental units.
In 2023 and 2024, Crown Pointe saw a slight increase in average home prices, rising from $419,655 in 2022 to $428,909 in 2023, and further to $429,002 in 2024. This represents a slower rate of growth compared to previous years. Concurrently, federal interest rates increased significantly, reaching 5.02% in 2023 and 5.33% in 2024, which may have contributed to the slower appreciation of home values.
Looking ahead, predictive models suggest that average home prices in Crown Pointe may continue to rise, but at a more moderate pace over the next five years. This projection is based on the recent slowdown in price appreciation and the current high interest rate environment. Average rent prices are also expected to increase, potentially at a faster rate than home prices, as the rental market adjusts to the reduced supply of rental units in the area.
In summary, Crown Pointe has experienced a significant shift towards homeownership over the past decade, accompanied by substantial increases in average home prices. The neighborhood has demonstrated resilience in its housing market, with homeownership rates continuing to rise even during periods of higher interest rates. The rental market, while shrinking in terms of percentage of occupied units, has seen steady increases in average rents. These trends paint a picture of a neighborhood that is becoming increasingly desirable for homeowners, with a competitive rental market for those who choose to rent.
