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Rising Home Values and Stable Ownership in Rosemont East, Tucson's Resilient Neighborhood
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Rosemont East, a small neighborhood in Tucson, Arizona, has experienced significant changes in its real estate market over the past decade. This area has seen fluctuations in population, homeownership rates, and property values, reflecting broader economic trends and local market dynamics.
The homeownership rate in Rosemont East has shown a general decline from 2013 to 2022, with some fluctuations. In 2013, the neighborhood had a high 87% homeownership rate, which decreased to 71% by 2022. This trend correlates with the rise in average home prices. From 2012 to 2022, average home prices in the area increased substantially, rising from $173,007 to $346,586, representing a 100% increase over a decade. This inverse relationship suggests that as homes became more expensive, fewer residents were able to afford homeownership.
Federal interest rates have played a significant role in shaping homeownership trends in Rosemont East. The period from 2013 to 2016 saw historically low interest rates, hovering around 0.1% to 0.4%. During this time, homeownership rates remained relatively high, ranging from 72% to 87%. However, as interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, homeownership rates showed a general decline, dropping to 71% in 2022. This trend aligns with the principle that lower interest rates typically encourage homeownership due to more affordable financing options.
The rental market in Rosemont East has shown interesting trends as well. The percentage of renters increased from 13% in 2013 to 28% in 2022, indicating a shift towards renting in the neighborhood. Average rent prices have fluctuated over the years, rising from $1,037 in 2013 to a peak of $1,265 in 2016, before declining to $1,202 in 2022. These changes in rent prices don't show a consistent correlation with the increasing renter population, suggesting that other factors, such as local economic conditions or housing supply, may be influencing rental rates.
Looking at the most recent data, the average home price in Rosemont East reached $347,068 in 2023 and further increased to $348,824 in 2024. This continued upward trend in home prices occurs despite the significant rise in federal interest rates, which stood at 5.02% in 2023 and 5.33% in 2024. These high interest rates typically make mortgages more expensive, potentially impacting homeownership rates in the coming years.
Applying predictive models to forecast 5-year trends, we can anticipate that average home prices in Rosemont East will likely continue to rise, albeit at a potentially slower rate due to the high interest rate environment. We might expect average home prices to reach around $380,000 to $400,000 by 2029. For rent prices, the trend is less clear, but a moderate increase could be expected, potentially reaching an average of $1,300 to $1,400 per month by 2029, assuming steady economic growth and continued demand for rental properties in the area.
In summary, Rosemont East has experienced a notable shift from a predominantly owner-occupied neighborhood to one with a growing renter population. This change has occurred alongside substantial increases in average home prices and fluctuating rent prices. The interplay between federal interest rates, home prices, and homeownership rates highlights the complex dynamics influencing the local real estate market. As the neighborhood continues to evolve, it will be crucial to monitor these trends and their impact on the community's demographics and housing affordability.
