Loading Content...
Rising Home Values and Ownership Dynamics in Howard Park, Dearborn: A Decade of Resilience
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Howard Park, located in Dearborn, Michigan, has experienced significant changes in homeownership rates and property values over the past decade. This vibrant neighborhood has seen a general trend towards increased renting in recent years, while average home prices have shown consistent growth. From 2013 to 2022, homeownership rates in Howard Park experienced notable shifts, with the rate decreasing from a high of 91% in 2013 to 76% by 2016. During this same period, average home prices steadily increased, rising from $118,484 in 2013 to $149,238 in 2016, representing a 26% increase in just three years. This trend suggests that rising property values may have made homeownership less accessible for some residents.
The relationship between federal interest rates and homeownership rates in Howard Park reveals interesting patterns. In 2013, when interest rates were at a low 0.11%, homeownership was at its peak of 91%. As interest rates began to rise, albeit slowly, homeownership rates declined. By 2018, with interest rates at 1.83%, homeownership had stabilized at 78%. This trend aligns with the general principle that lower interest rates tend to encourage homeownership due to more affordable financing options.
Renter percentages in Howard Park have shown an overall increase from 2013 to 2022, with some fluctuations. In 2013, only 9% of residents were renters, but this figure rose to 24% by 2016. Average rent prices also saw significant changes during this period, increasing from $736 in 2013 to $1,250 in 2016, a 70% jump. However, rent prices stabilized somewhat in subsequent years, with the average rent in 2022 at $1,050. The population of Howard Park has also grown during this period, from 2,156 in 2013 to 2,644 in 2022, which may have contributed to the increased demand for rental properties.
Looking at the most recent data, the average home price in Howard Park for 2023 was $256,076, showing a slight increase from 2022. In 2024, the average home price has further risen to $267,083, indicating continued growth in property values. Concurrently, federal interest rates have increased significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact homeownership trends in the coming years.
Applying predictive models to forecast 5-year trends, it is anticipated that average home prices in Howard Park will continue to rise, potentially reaching around $300,000 by 2029. This projection is based on the consistent upward trend observed over the past decade. For average rent prices, the forecast suggests a more moderate increase, potentially reaching approximately $1,200 to $1,300 per month by 2029, considering the historical fluctuations and recent stabilization in rent prices.
In summary, Howard Park has experienced a shift towards increased renting, with homeownership rates declining from their peak in 2013. Despite this trend, average home prices have shown robust growth, more than doubling from 2013 to 2024. Average rent prices have also increased overall, though with more variability. The neighborhood's growing population and the interplay between interest rates and property values will likely continue to shape Howard Park's housing market in the coming years.
