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Rising Home Values and Shifting Ownership in Lac Amora, Broomfield
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
Lac Amora, a neighborhood in Broomfield, Colorado, has experienced significant changes in its housing market over the past decade. The area has seen notable fluctuations in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market dynamics.
The homeownership rate in Lac Amora has shown a general upward trend, increasing from 49% in 2013 to 61% in 2022. This rise in homeownership coincided with a substantial increase in average home prices. In 2013, the average home price in the neighborhood was $237,793, which rose steadily to reach $583,132 in 2022, representing a 145% increase over nine years. This trend suggests a strong correlation between rising home values and increased homeownership rates.
The relationship between federal interest rates and homeownership rates in Lac Amora appears to follow the expected pattern. As interest rates remained low between 2013 and 2021, ranging from 0.08% to 1.83%, homeownership rates increased from 49% to 63%. This aligns with the general principle that lower interest rates make homeownership more accessible due to reduced borrowing costs.
Conversely, the percentage of renters in Lac Amora has decreased from 51% in 2014 to 39% in 2022. Despite this decline in the renter population, average rent prices have shown a consistent upward trend. In 2013, the average rent was $1,196, which increased to $1,536 by 2022, representing a 28% rise. This increase in rent prices, coupled with a decreasing renter population, suggests a tightening rental market with potentially higher-quality or more desirable rental properties.
Looking at the most recent data, the average home price in Lac Amora was $567,680 in 2023 and $578,769 in 2024, showing a slight increase. This modest growth occurs against the backdrop of higher federal interest rates, which stood at 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homeownership trends and home price growth in the neighborhood.
Applying predictive models to forecast 5-year trends, we can anticipate continued growth in average home prices, albeit at a potentially slower rate due to higher interest rates. Average home prices could reach approximately $650,000 by 2029. For rent prices, the upward trend is likely to continue, potentially reaching an average of around $1,800 per month by 2029, assuming consistent economic conditions and housing demand in the area.
In summary, Lac Amora has experienced a significant increase in homeownership rates and average home prices over the past decade, with a corresponding decrease in the renter population. Despite fewer renters, average rent prices have continued to rise. The neighborhood's housing market has shown resilience and growth, reflecting its desirability as a residential area. Future trends will likely be influenced by broader economic factors, including interest rates and regional economic development.
