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Rising Home Values and Shifting Ownership in Historic Olde Town, Arvada
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Historic Olde Town in Arvada, Colorado: A Decade of Real Estate Trends Historic Olde Town in Arvada, Colorado has experienced significant changes in its real estate landscape over the past decade. This charming neighborhood, known for its rich history, has seen notable shifts in homeownership rates, average home prices, and rental costs. The area has consistently maintained a higher percentage of renters compared to homeowners, while both home prices and rent have shown a marked upward trend.
Homeownership Rates and Home Prices The homeownership rate in Historic Olde Town has shown a general decline over the years. In 2013, the rate stood at 33%, remaining stable through 2014. However, by 2022, it had decreased to 29%. This decline in homeownership coincided with a substantial increase in average home prices. The average home price in 2013 was $188,565, which rose dramatically to $519,363 by 2022, representing a 175% increase over nine years. This inverse relationship suggests that the rising home prices may have made homeownership less attainable for many residents in the area.
Impact of Federal Interest Rates Federal interest rates have played a significant role in shaping homeownership trends in Historic Olde Town. From 2013 to 2016, when interest rates were exceptionally low (ranging from 0.11% to 0.40%), the homeownership rate remained relatively stable. However, as interest rates began to rise more significantly from 2017 (1.00%) to 2019 (2.16%), there was a slight uptick in homeownership to 34% in 2018, possibly due to residents rushing to buy before rates increased further. The subsequent drop in homeownership to 29% by 2022 coincides with rising interest rates, which reached 1.68% that year.
Rental Market Trends The renter population in Historic Olde Town has generally increased over time, from 67% in 2013 to 71% in 2022. This trend aligns with the rise in average rent prices, which increased from $760 in 2013 to $1,643 in 2022, a 116% increase. The population has also grown during this period, from 3,805 in 2013 to 4,245 in 2022, potentially contributing to the increased demand for rental properties and subsequent rise in rent prices.
Recent Market Moderation In 2023 and 2024, the housing market in Historic Olde Town showed signs of moderation. The average home price in 2023 was $513,926, showing a minor decrease from 2022. However, in 2024, prices rebounded slightly to $524,634. Interestingly, this occurred despite significantly higher interest rates, which reached 5.02% in 2023 and 5.33% in 2024. These higher rates may impact future homeownership trends and housing affordability in the neighborhood.
Future Projections Based on historical trends and current market conditions, we can forecast continued growth in both average home prices and rent costs over the next five years, albeit at a potentially slower rate. Home prices may see an average annual increase of 3-5%, potentially reaching around $630,000 by 2029. Average rent prices could continue to rise by 4-6% annually, potentially approaching $2,100 per month by 2029.
Conclusion Historic Olde Town has experienced a shift towards a higher percentage of renters, driven by rapidly increasing home prices that may have priced out potential buyers. The neighborhood has seen substantial appreciation in both home values and rent prices, reflecting its desirability and the broader trends in the Colorado housing market. The recent stabilization of home prices, coupled with higher interest rates, may signal a new phase in the neighborhood's real estate dynamics, potentially affecting future homeownership rates and housing affordability.
