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Rising Home Values and Ownership: Sunset Neighborhood's Housing Market Dynamics
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
The Sunset neighborhood in Boise City, Idaho, has experienced significant changes in homeownership rates and housing prices over the past decade. This community has seen a notable shift towards increased homeownership and rising property values. From 2013 to 2022, the Sunset neighborhood witnessed a substantial increase in homeownership rates. In 2013, 62% of residents were homeowners, but by 2022, this figure had risen to 78%, representing a 16 percentage point increase. This trend coincided with a dramatic rise in average home prices. In 2013, the average home price in Sunset was $160,495. By 2022, it had more than tripled to $530,793, marking a 230% increase over nine years.
The relationship between federal interest rates and homeownership rates in Sunset shows an interesting pattern. Despite fluctuations in interest rates, homeownership continued to rise steadily. For instance, when interest rates were at a low of 0.08% in 2021, homeownership reached 77%. This trend continued into 2022, with homeownership increasing to 78% even as interest rates rose to 1.68%, suggesting that other factors, such as local economic conditions and housing market dynamics, may have played a more significant role in driving homeownership in this neighborhood.
Conversely, as homeownership increased, the percentage of renters in Sunset decreased from 38% in 2013 to 22% in 2022. Despite this decline in the renter population, average rent prices showed an overall upward trend. In 2013, the average rent was $790 per month. It peaked at $1,002 in 2017 before settling at $827 in 2022, representing a 4.7% increase over the decade. This suggests that while fewer people were renting, the demand for rental properties remained strong enough to support higher rent prices.
Looking at the most recent data, 2023 saw a slight decrease in average home prices to $496,795, a 6.4% drop from 2022. However, in 2024, prices have begun to rebound, reaching $511,081. This recovery is occurring despite high federal interest rates of 5.02% in 2023 and 5.33% in 2024, indicating resilience in the local housing market.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in Sunset will continue to rise, albeit at a more moderate pace. By 2029, average home prices could reach approximately $600,000 to $650,000, assuming a conservative annual growth rate of 3-5%. For rent prices, we expect a steady increase, potentially reaching an average of $950 to $1,000 per month by 2029, based on historical trends and current market conditions.
In summary, the Sunset neighborhood has demonstrated a strong trend towards homeownership, with significant appreciation in property values over the past decade. Despite recent fluctuations, the housing market shows signs of stability and continued growth. The shift towards higher homeownership rates, coupled with rising home prices and steady rent increases, suggests a robust and desirable real estate market in this Boise City neighborhood.
