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Safford, Arizona: Rising Home Values and Fluctuating Ownership Rates in a Decade of Change
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Safford, the county seat of Graham County, Arizona, is a vibrant city nestled in the Gila Valley. Known for its rich mining history and proximity to the stunning Mount Graham, Safford has experienced notable shifts in its housing market over the past decade. The city has seen a general trend of increasing homeownership rates, rising average home prices, and fluctuating average rent prices.
From 2013 to 2022, Safford's homeownership rate increased from 72% to 75%, indicating a growing preference for property ownership among residents. This trend coincided with a significant rise in average home prices, which surged from $125,973 in 2013 to $242,028 in 2022, representing a remarkable 92% increase over nine years. The most substantial year-over-year growth occurred between 2020 and 2021, with average home prices jumping from $192,968 to $218,901, a 13.4% increase in just one year.
The relationship between federal interest rates and homeownership rates in Safford appears to follow general economic principles. As interest rates remained historically low from 2013 to 2021, ranging from 0.08% to 1.83%, homeownership rates in Safford increased from 72% to 74%. This trend aligns with the notion that lower interest rates make mortgages more affordable, encouraging home purchases. However, it's worth noting that despite the sharp increase in interest rates to 1.68% in 2022, Safford's homeownership rate continued to rise to 75%, suggesting other local factors may have influenced this trend.
Renter percentages in Safford have shown an inverse relationship to homeownership rates, decreasing from 28% in 2013 to 25% in 2022. Interestingly, average rent prices have experienced more volatility compared to home prices. In 2013, the average rent was $806, which rose to a peak of $926 in 2017 before declining to $866 in 2022. This fluctuation in rent prices, coupled with the city's population growth from 12,975 in 2013 to 13,943 in 2022, suggests a complex rental market affected by various factors including housing supply, local economic conditions, and changing demographics.
In 2023 and 2024, Safford's housing market continued to evolve. Average home prices reached $250,593 in 2023 and further increased to $254,315 in 2024, representing a modest but steady growth. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, potentially impacting housing affordability and market dynamics.
Looking ahead, predictive models suggest that Safford's housing market will likely continue its upward trajectory, albeit at a more moderate pace. Over the next five years, average home prices are projected to increase by approximately 3-4% annually, potentially reaching around $300,000 by 2029. Average rent prices are expected to follow a similar trend, with estimated annual increases of 2-3%, potentially reaching $950-$1,000 per month by 2029.
In summary, Safford's housing market has demonstrated resilience and growth, with increasing homeownership rates and rising property values. The interplay between federal interest rates, local economic factors, and population growth has shaped a dynamic real estate landscape. As the city continues to develop, these trends suggest a robust and evolving housing market that balances the needs of both homeowners and renters in this charming Arizona city.
