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San Gabriel's Rising Home Values and Ownership: A Decade of Resilient 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
San Gabriel, a neighborhood in Tucson, Arizona, has experienced significant changes in its real estate market over the past decade. From 2013 to 2022, homeownership rates increased from 44% to 61%, while average home prices more than doubled, rising from $123,481 to $277,382. This 124% increase in home values reflects broader economic trends and changing demographics in the area.
The relationship between federal interest rates and homeownership in San Gabriel presents an intriguing pattern. Despite fluctuations in interest rates, ranging from historic lows of 0.09% to 0.4% between 2013 and 2016, to higher rates of 1% to 2.16% from 2017 to 2019, homeownership continued to rise. This suggests that local factors may have played a significant role in driving the trend towards increased homeownership.
The rental market in San Gabriel has shown inverse trends to homeownership. The percentage of renters decreased from 56% in 2013 to 39% in 2022. However, average rent prices exhibited volatility, peaking at $1,028 in 2015 before settling at $831 in 2022, representing a 21.3% increase from 2013. This complex interplay between declining renter percentages and rising rent prices indicates the influence of various economic factors on the local rental market.
Recent data shows a slight decrease in average home prices to $274,738 in 2023, with projections indicating a rise to $282,584 in 2024. These changes occur against a backdrop of significantly higher federal interest rates, which reached 5.02% in 2023 and 5.33% in 2024. The impact of these higher rates on future homeownership trends and housing affordability in San Gabriel remains to be seen.
Predictive models forecast continued growth in both home values and rental prices over the next five years, albeit at a more moderate pace compared to the early 2020s. Average home prices are expected to reach approximately $320,000 by 2029, while average rent prices could increase to around $1,200 per month. These projections take into account factors such as higher interest rates, ongoing demand, and inflationary pressures.
In conclusion, San Gabriel has undergone a notable transformation in its real estate landscape over the past decade. The shift towards increased homeownership, coupled with substantial rises in property values, reflects the neighborhood's changing demographics and economic conditions. As the market continues to evolve, the interplay between interest rates, local demand, and broader economic factors will shape the future of San Gabriel's housing market. The coming years are likely to see continued growth in both home values and rental prices, though potentially at a more moderate rate than observed in the recent past.
