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Rising Home Values and Ownership in Gilbert's Lakeside Community: Val Vista Lakes
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
Val Vista Lakes, a neighborhood in Gilbert, Arizona, has experienced significant changes in homeownership rates and property values over the past decade. The area has seen a general trend of increasing homeownership, rising average home prices, and fluctuating average rent prices.
The homeownership rate in Val Vista Lakes has shown a steady upward trend, increasing from 62% in 2013 to 74% in 2022. This rise in homeownership coincides with a substantial increase in average home prices. In 2013, the average home price in the neighborhood was $279,963. By 2022, this figure had risen dramatically to $631,300, representing a 125% increase over nine years. This trend suggests a strong correlation between rising property values and increased homeownership in the area.
Federal interest rates have played a significant role in shaping homeownership trends in Val Vista Lakes. From 2013 to 2016, interest rates remained relatively low, hovering around 0.1% to 0.4%. During this period, homeownership in the neighborhood increased from 62% to 69%. As interest rates began to rise more significantly from 2017 onwards, reaching 1.68% in 2022, homeownership continued to grow, albeit at a slower pace, reaching 74% in 2022. This trend aligns with the general principle that lower interest rates encourage homeownership due to more affordable financing options.
The renter population in Val Vista Lakes has experienced a corresponding decline as homeownership increased. In 2013, 38% of residents were renters, but by 2022, this figure had dropped to 26%. Interestingly, despite the decreasing renter population, average rent prices have shown an overall upward trend. In 2013, the average rent was $1,457, which increased to $1,514 by 2022, representing a 3.9% increase. This trend suggests that despite fewer renters, demand for rental properties in the area remains strong, possibly due to the neighborhood's desirability and overall population growth.
Looking at the most recent data, average home prices in Val Vista Lakes experienced a slight decrease from $631,300 in 2022 to $608,753 in 2023. However, the market has shown signs of recovery in 2024, with average home prices rising to $633,187. This recent uptick occurs despite the Federal interest rate increasing to 5.33% in 2024, indicating strong underlying demand for homes in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in Val Vista Lakes will continue to rise, albeit at a more moderate pace compared to the rapid growth seen in the early 2020s. We project average home prices to reach approximately $700,000 by 2029. Average rent prices are also expected to increase, potentially reaching around $1,800 per month in the same timeframe.
In summary, Val Vista Lakes has demonstrated a clear trend of increasing homeownership and rising property values over the past decade. Despite fluctuations in federal interest rates, the neighborhood has maintained its appeal to homebuyers. The rental market, while shrinking in terms of population percentage, has shown resilience with steadily increasing average rents. These trends point to a robust and desirable real estate market in Val Vista Lakes, with potential for continued growth in both home values and rental prices in the coming years.
