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San Marcos: Rising Home Values Amidst Shifting Ownership Trends
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 Marcos, a neighborhood in Chandler, Arizona, has undergone significant changes in its housing market from 2013 to 2022. The area has experienced a notable shift in residential composition, characterized by a trend towards increased renting and rising average home and rent prices. This transformation has reshaped the neighborhood's demographic and economic landscape.
The homeownership rate in San Marcos has shown a declining trend over the past decade. In 2013, 48% of residents owned their homes, but by 2022, this figure had decreased to 39%. Conversely, the average home prices in the neighborhood have shown a steady increase. The average home price rose from $224,713 in 2013 to $537,748 in 2022, representing a substantial 139% increase over this period.
The relationship between federal interest rates and homeownership rates in San Marcos appears to follow established economic trends. From 2013 to 2015, when interest rates were at historic lows (0.11% to 0.13%), homeownership rates remained relatively stable. However, as interest rates began to rise from 2016 onwards, reaching 1.68% in 2022, homeownership rates declined. This aligns with the general principle that higher interest rates can make home financing less affordable, potentially discouraging homeownership.
The percentage of renters in San Marcos has shown an upward trend, increasing from 50% in 2013 to 61% in 2022. This shift towards renting coincides with a significant increase in average rent prices. The average rent rose from $778 per month in 2013 to $1,464 in 2022, representing an 88% increase. The population of San Marcos grew from 2,173 in 2013 to 3,162 in 2022, which likely contributed to the increased demand for rental properties and subsequent rise in rent prices.
In 2023, the average home price in San Marcos decreased slightly to $509,480, with the federal interest rate rising to 5.02%. As of 2024, the average home price has rebounded to $527,035, while the federal interest rate has further increased to 5.33%. These higher interest rates may continue to impact homeownership trends in the neighborhood.
Based on the historical data and current trends, it is projected that average home prices in San Marcos will continue to rise over the next five years, albeit at a potentially slower rate due to higher interest rates. Average rent prices are also expected to increase, driven by the growing population and the shift towards renting in the neighborhood.
In summary, San Marcos has experienced a significant transformation in its housing market over the past decade. The neighborhood has seen a decrease in homeownership rates, coupled with substantial increases in both average home prices and rent prices. These trends, influenced by factors such as population growth and changing interest rates, have reshaped the residential landscape of this Chandler neighborhood.
