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Sahuarita, Arizona: Rising Home Values and Ownership Rates Amidst Population Growth
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Sahuarita, a rapidly growing town in Arizona, has experienced significant demographic and housing market changes over the past decade. Located just south of Tucson, this vibrant community has seen a remarkable increase in homeownership rates and fluctuating average home and rent prices, reflecting its dynamic real estate landscape.
The homeownership rate in Sahuarita has shown a strong upward trend, rising from 77% in 2013 to 81% in 2022. This increase in homeownership coincided with a substantial rise in average home prices, which grew from $179,719 in 2013 to $361,627 in 2022, representing a 101% increase over nine years. The correlation between rising homeownership rates and increasing home prices suggests a robust demand for housing in the area, likely driven by factors such as population growth and the town's desirability as a residential location.
Federal interest rates have played a significant role in shaping homeownership trends in Sahuarita. The period from 2013 to 2016 saw historically low interest rates, ranging from 0.09% to 0.4%, which likely contributed to the steady homeownership rate of around 77%. As interest rates began to rise from 2017 onwards, reaching 1.83% in 2018, Sahuarita surprisingly saw an increase in homeownership to 81%. This trend continued despite further rate increases, suggesting that other local factors were outweighing the impact of rising interest rates on home purchases.
The rental market in Sahuarita has shown interesting trends in relation to the homeownership increase. The percentage of renters decreased from 21% in 2014 to 19% in 2022, while average rent prices fluctuated. In 2013, the average rent was $1,420, which remained relatively stable with some fluctuations, reaching $1,418 in 2022. This stability in rent prices, despite the decrease in the proportion of renters, could be attributed to the town's growing population, which increased from 28,677 in 2013 to 36,268 in 2022, maintaining demand for rental properties.
In 2023 and 2024, Sahuarita's housing market showed signs of stabilization. The average home price in 2023 was $360,963, slightly decreasing from 2022, and then increased marginally to $364,370 in 2024. This period coincided with significantly higher federal interest rates of 5.02% in 2023 and 5.33% in 2024, which may have contributed to the slower pace of home price growth compared to previous years.
Looking ahead, predictive models suggest that Sahuarita's housing market will continue to evolve. Average home prices are projected to maintain a moderate upward trajectory over the next five years, potentially reaching around $400,000 by 2029. Rent prices are expected to follow a similar trend, with modest annual increases, potentially reaching an average of $1,600 per month by 2029. These projections are based on historical trends and assume continued population growth and economic stability in the region.
In summary, Sahuarita has demonstrated a strong trend towards homeownership, with a significant increase in average home prices over the past decade. The rental market has remained relatively stable despite a decreasing proportion of renters. Recent data shows a slight cooling in home price growth, possibly influenced by rising interest rates. The town's continued population growth and desirability suggest a positive outlook for both the homeownership and rental markets in the coming years.
