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Rising Home Values and Ownership in Union Park: A Decade of Growth
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Union Park, a neighborhood in Des Moines, Iowa, has experienced significant changes in homeownership rates and property values over the past decade. The area has shown remarkable growth, reflecting broader economic trends and local market dynamics. Homeownership in Union Park has increased substantially, rising from 63% in 2019 to 74% in 2022. This upward trend coincided with a steady increase in average home prices, which grew from $118,288 in 2019 to $153,790 in 2022, representing a 30% increase over three years. Despite rising prices, more residents were able to enter the housing market, possibly due to favorable economic conditions or increased desire for homeownership.
Federal interest rates have played a crucial role in shaping homeownership trends in Union Park. From 2019 to 2021, interest rates were historically low, dropping from 2.16% to 0.08%. This low-interest environment likely contributed to the surge in homeownership, making mortgage financing more accessible and affordable for many residents. The increase in homeownership from 63% in 2019 to 70% in 2021 aligns with this period of low interest rates.
Renter percentages in Union Park have fluctuated inversely to homeownership rates. In 2019, 32% of residents were renters, which decreased to 26% by 2022. Average rent prices have not shown a consistent trend during this period, with fluctuations from $1,108 in 2019 to $1,259 in 2021, then decreasing to $1,137 in 2022. This fluctuation in rent prices, coupled with the declining percentage of renters, suggests a complex interplay between housing affordability, preferences, and local economic factors.
Recent data shows that average home prices in Union Park continued to rise, reaching $160,801 in 2023 and $170,443 in 2024. This represents a 4.6% increase from 2022 to 2023 and a further 6% increase from 2023 to 2024. Concurrently, federal interest rates have significantly increased, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homeownership trends and affordability in the neighborhood.
Applying predictive models to forecast 5-year trends, it is anticipated that average home prices in Union Park will continue to rise, albeit at a potentially slower rate due to higher interest rates. By 2029, average home prices could reach approximately $200,000 to $220,000, assuming a conservative annual growth rate of 3-5%. Average rent prices are expected to follow a similar upward trajectory, potentially reaching $1,300 to $1,400 per month by 2029, factoring in historical fluctuations and inflationary pressures.
In summary, Union Park has demonstrated a robust increase in homeownership rates and property values over the past decade. The neighborhood has shown resilience in the face of changing economic conditions, with homeownership rates rising despite increasing home prices. The interplay between federal interest rates, home prices, and rental markets has shaped the housing landscape in Union Park, creating a dynamic and evolving real estate environment. As the neighborhood continues to develop, these trends will likely influence its character and demographic composition in the coming years.
