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Rising Home Values and Shifting Ownership in Park Terrace, Carrollton
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
Park Terrace, a vibrant neighborhood in Carrollton, Texas, has experienced significant changes in its real estate market and demographic composition over the past decade. The area has seen a general trend towards increased renting, with homeownership rates declining from 45% in 2013 to 37% in 2022. Concurrently, average home prices have shown substantial growth, while average rent prices have also increased steadily.
The relationship between homeownership rates and average home prices in Park Terrace reveals an interesting inverse correlation. As average home prices rose from $108,824 in 2010 to $317,535 in 2022, a remarkable 192% increase, the percentage of owner-occupied homes decreased from 45% in 2013 to 37% in 2022. This trend suggests that rising home prices may have made homeownership less accessible for many residents. For instance, when the average home price was $146,168 in 2015, 47% of homes were owner-occupied. However, by 2019, as the average home price reached $218,089, owner-occupancy had dropped to 35%.
Federal interest rates have played a role in shaping homeownership trends in Park Terrace. The period of historically low interest rates from 2010 to 2021, ranging from 0.08% to 0.40%, coincided with the initial increase in homeownership from 45% in 2013 to 47% in 2015. However, despite these low rates, homeownership began to decline after 2015, possibly due to rapidly increasing home prices outpacing the benefits of low interest rates. The recent rise in interest rates, reaching 1.68% in 2022, may further impact homeownership rates in the coming years.
The renter population in Park Terrace has grown significantly, with the percentage of renter-occupied homes increasing from 55% in 2013 to 63% in 2022. This trend has been accompanied by a substantial rise in average rent prices, from $700 in 2013 to $1,321 in 2022, an 89% increase. The growing renter population, coupled with rising home prices, has likely contributed to the upward pressure on rent prices. For example, as the renter-occupied percentage reached 65% in 2019, the average rent had climbed to $961, and by 2022, with 63% renter occupancy, it had further increased to $1,321.
In 2023 and 2024, the real estate market in Park Terrace continued its upward trajectory. The average home price in 2023 was $330,478, showing a 4.1% increase from 2022. In 2024, it further rose to $341,807, indicating a 3.4% year-over-year growth. Notably, federal interest rates also increased significantly during this period, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homeownership trends and affordability in the neighborhood.
Looking ahead, predictive models suggest that the upward trend in both average home prices and rent costs is likely to continue over the next five years. Average home prices are projected to potentially reach around $400,000 by 2029, assuming a conservative annual growth rate of 3-4%. Average rent prices could potentially exceed $1,600 per month within the same timeframe, based on historical growth patterns.
In summary, Park Terrace has experienced a significant shift towards a renter-majority population, coinciding with substantial increases in both average home prices and rent costs. The inverse relationship between rising home prices and declining homeownership rates, coupled with the impact of fluctuating interest rates, has reshaped the neighborhood's housing landscape. As the area continues to evolve, these trends are likely to have lasting effects on the community's demographic composition and housing affordability.
