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Rising Home Values and Shifting Ownership in PaulAnn: A Decade of Housing Market Dynamics
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
PaulAnn, a neighborhood in San Angelo, Texas, has experienced significant changes in its housing market over the past decade. The area has seen a notable decline in homeownership rates, while average home prices have steadily increased. This inverse relationship between homeownership and property values has reshaped the neighborhood's demographic composition.
The homeownership rate in PaulAnn has decreased from 70% in 2013 to 56% in 2022, representing a 14 percentage point drop over nine years. Simultaneously, average home prices in the neighborhood have risen substantially. In 2014, the average home price was $99,420, and by 2022, it had increased to $195,225, representing a 96.4% increase over eight years. This trend suggests that rising property values may be making homeownership less accessible for some residents.
Federal interest rates have played a role in shaping homeownership trends in PaulAnn. From 2013 to 2016, when interest rates were below 0.5%, the homeownership rate remained relatively stable, fluctuating between 64% and 70%. However, as interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, the homeownership rate showed a more consistent decline. This trend aligns with the general principle that higher interest rates can make mortgages less affordable, potentially discouraging homeownership.
The percentage of renters in PaulAnn has increased from 30% in 2013 to 44% in 2022, mirroring the decline in homeownership. Average rent prices have also shown an overall upward trend, albeit with some fluctuations. In 2013, the average rent was $1,022, which increased to $1,281 by 2017, representing a 25.3% increase. However, rent prices then experienced some volatility, dropping to $1,056 in 2022. The population of PaulAnn has remained relatively stable during this period, fluctuating between 6,500 and 8,000 residents, which suggests that changes in rent prices may be more influenced by market factors than population pressure.
In 2023, the average home price in PaulAnn reached $202,499, and in 2024, it further increased to $206,517. This continued upward trend in home prices occurs despite the significant rise in interest rates, which stood at 5.02% in 2023 and 5.33% in 2024. These high interest rates, combined with rising home prices, may further challenge affordability for potential homebuyers in the neighborhood.
Looking ahead, predictive models suggest that average home prices in PaulAnn will continue to rise over the next five years, albeit at a potentially slower rate due to high interest rates. Average rent prices are also expected to increase, driven by the growing percentage of renters in the neighborhood and the overall upward trend in housing costs.
In summary, PaulAnn has experienced a significant shift from homeownership to renting over the past decade, coupled with substantial increases in average home prices. The interplay between rising property values, changing interest rates, and evolving rental market dynamics has reshaped the housing landscape in this San Angelo neighborhood. As these trends continue to unfold, they will likely have lasting impacts on the community's demographic composition and housing affordability.
