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Santa Fe, Texas: Rising Home Values and Stable 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
Santa Fe, Texas, located in Galveston County, is a small suburban community with a rich history dating back to the 19th century. The city has experienced notable fluctuations in homeownership rates, average home prices, and average rent prices over the past decade. This analysis will explore these trends and their interrelationships.
From 2013 to 2022, Santa Fe saw a slight decline in homeownership rates, dropping from 86% to 85%. During this same period, average home prices increased significantly, rising from $142,883 in 2013 to $313,023 in 2022, representing a substantial 119% increase. This inverse relationship suggests that rising home prices may have made homeownership less attainable for some residents.
Federal interest rates play a crucial role in homeownership trends. From 2013 to 2016, interest rates remained low, hovering around 0.1% to 0.4%. During this period, homeownership in Santa Fe decreased slightly from 86% to 80%. As interest rates began to rise from 2017 to 2019, reaching 2.16%, homeownership rates stabilized at 80%. Interestingly, when interest rates dropped to near-zero levels in 2020 and 2021, homeownership rates in Santa Fe increased to 85%, aligning with the general trend of lower interest rates encouraging homeownership.
Renter percentages in Santa Fe showed an overall increase from 12% in 2013 to 15% in 2022, with a peak of 18% in 2019. Average rent prices fluctuated during this period, starting at $982 in 2013, peaking at $1,230 in 2016, and then settling at $1,019 in 2022. The population of Santa Fe grew from 19,498 in 2013 to 19,731 in 2022, a modest 1.2% increase. This population growth, coupled with rising home prices, may have contributed to the slight increase in renter percentages despite fluctuating rent prices.
In 2023, the average home price in Santa Fe was $312,063, showing a slight decrease from the 2022 figure. As of 2024, the average home price has increased marginally to $315,003. It's worth noting that federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024, which may impact future homeownership trends.
Looking ahead, predictive models suggest that average home prices in Santa Fe may continue to rise moderately over the next five years, potentially reaching around $350,000 by 2029. Average rent prices are also expected to increase, possibly reaching $1,200 to $1,300 per month in the same timeframe. These projections are based on historical trends and current economic conditions.
In summary, Santa Fe has experienced a slight decrease in homeownership rates alongside significant increases in average home prices over the past decade. The relationship between federal interest rates and homeownership rates has generally followed expected patterns, with lower rates coinciding with higher ownership. Renter percentages have shown a modest increase, while average rent prices have fluctuated. The recent rise in interest rates and the continued increase in home prices may present challenges for potential homebuyers in the coming years, potentially leading to a further increase in the renter population.
