Lake Edina, a vibrant neighborhood in Edina, Minnesota, has experienced significant changes in its real estate market over the past decade. The area has seen a general decline in homeownership rates while average home prices and rents have shown an upward trajectory. This inverse relationship between homeownership rates and average home prices has been a defining characteristic of Lake Edina's housing market. In 2013, when the homeownership rate was 50%, the average home price was $489,812. By 2022, despite the average home price climbing to $728,554, the homeownership rate had dropped to 44%, indicating a significant shift towards renting in the neighborhood.

Federal interest rates have played a crucial role in shaping homeownership trends in Lake Edina. The period from 2013 to 2016 saw relatively low interest rates, ranging from 0.11% to 0.4%, which coincided with a slight increase in homeownership from 50% to 52%. As interest rates began to rise more sharply from 2017 onwards, reaching 1.68% in 2022, the homeownership rate in Lake Edina declined from 54% to 44%. This trend aligns with the general principle that higher interest rates can make mortgages less affordable, potentially discouraging homeownership.

The renter percentage in Lake Edina has shown an inverse relationship to homeownership rates, naturally increasing as homeownership declined. In 2013, the renter percentage was 50%, with an average rent of $1,230. By 2022, as the renter percentage increased to 56%, the average rent had risen to $1,306. This increase in rental demand, coupled with rising property values, likely contributed to the upward pressure on rent prices. It's worth noting that the neighborhood's population fluctuated during this period, peaking at 1,474 in 2017 before declining to 1,325 in 2022, which may have influenced rental market dynamics.