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Roanoke, Texas: Rising Home Values and Ownership Rates in a Growing Dallas-Fort Worth Suburb
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
Roanoke, Texas, a suburban city in Denton County within the Dallas-Fort Worth metroplex, has experienced significant growth and changes in its housing market over the past decade. Known for its strategic location and expanding economy, Roanoke has seen notable increases in homeownership rates, average home prices, and average rent costs from 2013 to 2022. This analysis examines these trends and their implications for the city's future.
From 2013 to 2022, Roanoke witnessed a substantial rise in homeownership rates. The percentage of owner-occupied housing units increased from 60% in 2013 to 67% in 2022, indicating a growing preference for homeownership in the city. This trend coincided with a remarkable increase in average home prices. In 2013, the average home price in Roanoke was $193,055. By 2022, this figure had more than doubled to $434,809, representing a 125% increase over nine years.
The relationship between federal interest rates and homeownership rates in Roanoke appears to follow established patterns. During periods of lower interest rates, such as from 2013 to 2016 when rates were below 0.5%, homeownership rates in Roanoke increased from 60% to 61%. As interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, homeownership rates continued to climb, reaching 67% in 2022. This suggests that while low interest rates may have initially encouraged homeownership, other factors such as local economic growth and housing demand likely played a significant role in sustaining this trend.
Renter percentages in Roanoke have shown a general decline as homeownership rates increased. The percentage of renter-occupied housing units decreased from 37% in 2013 to 34% in 2022. Despite this decline, average rent prices have risen significantly. In 2013, the average rent was $1,094 per month. By 2022, this had increased to $1,957, representing a 79% increase over nine years. This upward trend in rent prices occurred alongside substantial population growth, with Roanoke's population increasing from 6,876 in 2013 to 12,297 in 2022, potentially driving up demand for rental properties.
In 2023 and 2024, Roanoke's housing market showed signs of stabilization. The average home price in 2023 was $438,313, a slight increase from 2022. In 2024, the average home price remained virtually unchanged at $438,312. This plateau in home prices coincides with higher federal interest rates, which stood at 5.02% in 2023 and 5.33% in 2024, potentially cooling the housing market.
Looking ahead, based on historical trends and current market conditions, we can forecast potential 5-year trends for Roanoke's housing market. Average home prices may experience moderate growth, potentially reaching around $480,000 by 2029, assuming a more conservative annual growth rate of 2-3%. Average rent prices could continue to rise, potentially reaching $2,300-$2,500 per month by 2029, driven by population growth and housing demand.
In summary, Roanoke has experienced significant growth in homeownership rates and housing prices over the past decade. The city's rapid population growth has been a key driver of these trends, alongside fluctuating interest rates and local economic factors. While recent data suggests a potential stabilization in the housing market, Roanoke's continued growth and desirability as a suburban community in the Dallas-Fort Worth area may support ongoing, albeit more moderate, increases in both home values and rent prices in the coming years.
