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Rising Home Values and Shifting Ownership in Frisco Heights: A Decade of Change
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
Frisco Heights, a compact urban neighborhood in Fort Worth, Texas, has experienced significant changes in its housing market over the past decade. The area has seen fluctuations in homeownership rates, with a general trend towards more renters. Concurrently, average home prices have shown consistent growth, while average rent prices have also increased, albeit at a more moderate pace.
The relationship between homeownership rates and average home prices in Frisco Heights reveals an interesting trend. In 2013, the homeownership rate was 29%, with average home prices at $275,656. As average home prices steadily increased, reaching $361,986 by 2017, the homeownership rate rose to 34%. However, this trend didn't continue linearly. By 2022, despite average home prices climbing to $507,080, the homeownership rate had decreased to 29%. This suggests that rising home prices may have made homeownership less attainable for some residents.
Federal interest rates have played a role in shaping homeownership trends in Frisco Heights. From 2013 to 2016, when interest rates were extremely low (ranging from 0.11% to 0.4%), the neighborhood saw an increase in homeownership from 29% to 37%. This aligns with the general trend of lower interest rates encouraging homeownership due to more affordable financing options. However, as interest rates began to rise more significantly from 2017 onwards, reaching 1.68% in 2022, the homeownership rate in Frisco Heights declined to 29%, suggesting that higher borrowing costs may have deterred potential buyers.
Renter percentages and average rent prices in Frisco Heights have shown a complex relationship. In 2013, 71% of residents were renters, with an average rent of $1,083. By 2017, the renter percentage had decreased slightly to 66%, while average rent increased to $1,126. However, by 2022, the renter percentage had risen back to 71%, with average rent reaching $1,366. This trend suggests that despite rising rent prices, more residents are choosing or needing to rent, possibly due to the even steeper increase in home prices making homeownership less accessible.
Looking at the most recent data, average home prices in Frisco Heights reached $502,945 in 2023 and $515,938 in 2024. This represents a slight moderation in price growth compared to previous years. Concurrently, federal interest rates have significantly increased, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may continue to impact homeownership trends in the neighborhood.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in Frisco Heights will continue to rise, albeit at a more moderate pace than seen in recent years. This moderation is likely due to the higher interest rate environment. Average rent prices are also expected to increase, potentially at a faster rate than home prices, as demand for rentals may remain strong if homeownership becomes less attainable for some residents.
In summary, Frisco Heights has experienced a shift towards a higher percentage of renters over the past decade, despite fluctuations in homeownership rates. Average home prices have shown substantial growth, potentially pricing out some potential buyers. Average rent prices have also increased, but not as dramatically as home prices. The recent rise in interest rates may continue to influence these trends, potentially favoring the rental market in the coming years.
