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Rising Home Values and Shifting Ownership in Parkway and Cherry Point: A Decade of Change in Lubbock's Dynamic Neighborhood
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
The Parkway and Cherry Point neighborhood in Lubbock, Texas, has undergone significant changes in its housing market over the past decade. This area has experienced fluctuations in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market conditions.
From 2013 to 2022, the Parkway and Cherry Point neighborhood witnessed a notable shift in homeownership rates. In 2013, 62% of residents owned their homes, but by 2022, this figure had decreased to 51%. This decline in homeownership coincided with a substantial increase in average home prices. In 2013, the average home price was $56,971, and by 2022, it had risen to $91,807, representing a 61% increase over nine years.
The relationship between federal interest rates and homeownership rates in this neighborhood is evident. As interest rates remained low from 2013 to 2016, hovering around 0.1% to 0.4%, homeownership rates initially remained stable. However, as interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, homeownership rates declined. This trend aligns with the general principle that lower interest rates tend to encourage homeownership due to more affordable financing options.
Conversely, as homeownership rates decreased, the percentage of renters in the neighborhood increased. In 2013, 38% of residents were renters, and by 2022, this had grown to 49%. Interestingly, average rent prices did not follow a consistent upward trend during this period. In 2013, the average rent was $795, and it fluctuated over the years, reaching $885 in 2022, an 11.3% increase. The population of the neighborhood also varied during this time, peaking at 10,794 in 2018 before declining to 7,873 in 2022, which may have influenced rental market dynamics.
In 2023 and 2024, the housing market in Parkway and Cherry Point continued to evolve. The average home price reached $97,687 in 2023, a 6.4% increase from 2022. However, in 2024, there was a slight decrease to $92,076, marking a 5.7% decline. This shift coincided with a significant increase in federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024, potentially impacting home buying decisions in the neighborhood.
Looking ahead, based on historical trends and current market conditions, it's projected that average home prices in Parkway and Cherry Point may experience moderate growth over the next five years. However, this growth could be tempered by the current high interest rates. Average rent prices are likely to continue their upward trajectory, potentially at a rate of 2-3% annually, driven by the increasing proportion of renters in the neighborhood.
In summary, the Parkway and Cherry Point neighborhood has experienced a shift towards a more rental-dominated market, with declining homeownership rates and rising average home prices. The interplay between federal interest rates, housing prices, and rental trends has significantly shaped the local housing market dynamics, creating a complex and evolving residential landscape in this Lubbock neighborhood.
