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Rising Home Values and Shifting Ownership in Sunland Springs Village, Mesa
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Sunland Springs Village, a neighborhood in Mesa, Arizona, has experienced significant changes in its housing market over the past decade. This analysis examines the fluctuations in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market dynamics. From 2013 to 2022, Sunland Springs Village saw a gradual decline in homeownership percentages, while average home prices consistently increased. In 2013, the homeownership rate was 94% with an average home price of $259,706. By 2022, the ownership rate had decreased to 86%, while the average home price had risen to $506,051. This inverse relationship suggests that rising home prices may have made homeownership less attainable for some residents.
Federal interest rates have played a role in shaping homeownership trends in Sunland Springs Village. From 2013 to 2016, when interest rates were consistently low (ranging from 0.11% to 0.4%), the homeownership rate remained relatively stable, hovering around 91-94%. However, as interest rates began to rise from 2017 (1%) to 2019 (2.16%), there was a noticeable decline in homeownership, dropping to 89% by 2019. This trend aligns with the general principle that lower interest rates tend to encourage homeownership due to more affordable financing options.
The renter percentage in Sunland Springs Village has shown an upward trend, increasing from 5% in 2013 to 14% in 2022. Average rent prices have fluctuated during this period. In 2013, the average rent was $1,608, peaking at $1,750 in 2014 and 2015. By 2022, the average rent had decreased slightly to $1,618. The increase in the renter population, from 156 in 2013 to 515 in 2022, may have contributed to the relative stability of rent prices despite the overall upward trend in housing costs.
In 2023 and 2024, Sunland Springs Village experienced a slight downturn in average home prices, with values of $495,953 and $501,142 respectively. This represents a modest decrease from the 2022 peak of $506,051. Concurrently, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may be contributing to the stabilization of home prices in the neighborhood.
Based on historical trends and current market conditions, the following 5-year trends can be anticipated for Sunland Springs Village: Average home prices are likely to continue a moderate upward trajectory, potentially reaching around $550,000 by 2029, assuming a conservative annual growth rate of 2-3%. Average rent prices may see a gradual increase, potentially reaching $1,800-$1,900 by 2029, reflecting ongoing demand for rental properties in the area.
In summary, Sunland Springs Village has experienced a shift towards a higher proportion of renters over the past decade, coupled with substantial increases in average home prices. The interplay between federal interest rates, homeownership rates, and housing costs has been evident, with higher interest rates coinciding with decreased homeownership. Despite recent stabilization in home prices, the long-term trend suggests continued growth in both home values and rental costs, albeit at a more moderate pace than seen in previous years.
