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San Benito, Texas: Rising Home Values and Shifting Ownership in a Small City
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
San Benito, a city in Texas, has experienced dynamic changes in its housing market over the past decade. Located in Cameron County, this vibrant community has seen fluctuations in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market conditions.
The homeownership rate in San Benito has remained relatively stable, hovering around 68-69% from 2013 to 2022. However, this stability masks some underlying shifts in the housing market. In 2013, the homeownership rate stood at 69%, with average home prices at $94,680. By 2022, the homeownership rate had slightly decreased to 68%, while average home prices had risen significantly to $137,898, representing a 45.6% increase over this period.
Federal interest rates have played a crucial role in shaping homeownership trends in San Benito. The period from 2013 to 2016 saw historically low interest rates, ranging from 0.11% to 0.40%. During this time, homeownership rates remained steady at around 68-69%, likely supported by the favorable borrowing conditions. As interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, the homeownership rate showed resilience, maintaining its level despite the increased cost of borrowing.
The rental market in San Benito has also seen notable changes. In 2013, 31% of the population were renters, with an average rent of $621. By 2022, the percentage of renters had increased slightly to 32%, while the average rent had risen to $754, a 21.4% increase. This growth in average rent, while significant, was less dramatic than the increase in average home prices over the same period. The city's population remained relatively stable during this time, growing from 32,811 in 2013 to 32,366 in 2022, suggesting that changes in the rental market were driven more by economic factors than population growth.
Looking at the most recent data, 2023 saw average home prices in San Benito reach $140,776, a 2.1% increase from 2022. However, in 2024, there was a slight decrease to $137,761, representing a 2.1% drop. This recent trend coincides with a significant rise in federal interest rates, which increased from 5.02% in 2023 to 5.33% in 2024, potentially impacting home affordability and buyer demand.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in San Benito may continue to experience moderate growth, albeit at a slower pace than observed in recent years. The high interest rate environment could temper rapid price increases. Average rent prices are expected to follow a similar trajectory, with steady but modest increases, as the rental market adjusts to overall housing market conditions and local economic factors.
In summary, San Benito's housing market has demonstrated resilience and growth over the past decade. The stability in homeownership rates, despite significant increases in average home prices, suggests a strong local preference for homeownership. The rental market has seen more moderate price increases, potentially offering an increasingly attractive option for those unable to enter the homeownership market. As the city moves forward, the interplay between interest rates, housing prices, and rental costs will continue to shape the accessibility and affordability of housing in San Benito.
