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Rising Home Values and Shifting Ownership in Lubbock's North By Northwest: A Decade of Change
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
North By Northwest, a vibrant neighborhood in Lubbock, Texas, has experienced significant changes in its real estate market over the past decade. This area has seen fluctuations in homeownership rates, steady increases in average home prices, and variations in rental trends, all of which reflect broader economic shifts and local market conditions. From 2013 to 2022, homeownership rates in North By Northwest showed notable variability. Starting at 38% in 2013, the rate dropped to a low of 33% in 2019 before rebounding to 43% in 2020 and settling at 39% in 2022. Concurrently, average home prices demonstrated a general upward trend, increasing from $113,281 in 2013 to $184,125 in 2022, marking a substantial 62.5% rise over this period. The interplay between federal interest rates and homeownership rates in the neighborhood reveals interesting patterns. In 2020, when interest rates dropped to 0.38%, homeownership peaked at 43%. This aligns with the general trend of lower interest rates encouraging homeownership due to more affordable financing options. However, as interest rates rose to 1.68% in 2022, homeownership rates moderated to 39%, suggesting a potential correlation between higher interest rates and slightly decreased homeownership.
Renter percentages in North By Northwest have remained consistently high, fluctuating between 55% and 63% from 2013 to 2022. The highest renter percentage was observed in 2021 at 63%, coinciding with a period of low interest rates (0.08%). Average rent prices have shown an overall increasing trend, rising from $1,139 in 2013 to $1,079 in 2022, with a peak of $1,206 in 2019. The high renter percentage could be attributed to the neighborhood's growing population, which increased from 10,179 in 2010 to 12,159 in 2022, potentially driving demand for rental properties.
Recent data shows that the average home price in North By Northwest reached $190,243 in 2023, indicating continued appreciation. However, in 2024, there was a slight decrease to $189,595, marking the first decline in average home prices since 2019. This slight downturn coincides with significantly higher interest rates, which rose to 5.02% in 2023 and further to 5.33% in 2024. These higher interest rates may be impacting home affordability and buyer demand in the neighborhood.
Applying predictive models to forecast 5-year trends, it is anticipated that average home prices in North By Northwest may continue to experience moderate growth, albeit at a slower pace than observed in recent years due to higher interest rates. Average rent prices are expected to maintain their upward trajectory, driven by the neighborhood's consistently high renter population and growing overall population.
In summary, North By Northwest has demonstrated a dynamic real estate market with fluctuating homeownership rates, steadily increasing average home prices, and generally rising average rent prices. The neighborhood's high renter percentage, coupled with its growing population, suggests a strong rental market. Recent interest rate increases may moderate home price growth and potentially impact homeownership rates in the coming years. The area's real estate market appears poised for continued evolution, balancing between homeownership opportunities and a robust rental market.
