Loading Content...
Seville, Gilbert: Soaring Home Values and Ownership Rates Defy Rising Interest Rates
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Seville, a suburban neighborhood in Gilbert, Arizona, has experienced significant changes in homeownership and property values over the past decade. This analysis examines the trends in home prices, ownership rates, and rental market dynamics from 2013 to 2024, with projections for future growth. Homeownership rates in Seville have shown a consistent upward trend, increasing from 86% in 2013 to 93% in 2022. This rise in owner-occupied housing has been accompanied by a substantial appreciation in average home prices. In 2013, the average home in Seville was valued at $293,491. By 2022, this figure had more than doubled to $661,173, representing a remarkable 125% increase over nine years.
The relationship between federal interest rates and homeownership rates in Seville presents an intriguing pattern. Despite fluctuations in interest rates, the neighborhood maintained high rates of homeownership. For example, when interest rates were at historic lows of 0.08% in 2021, homeownership stood at 90%. As rates increased to 1.68% in 2022, homeownership actually rose to 93%, suggesting that local factors may have a stronger influence on homeownership than national interest rates in this community.
The rental market in Seville has seen a decline in the percentage of renters, dropping from 13% in 2013 to 7% in 2022. Despite this decrease, average rent prices have shown an upward trend, increasing from $1,802 in 2013 to $2,041 in 2022, a 13% rise. This increase in rent prices, coupled with a decreasing renter population, suggests a competitive rental market, possibly driven by the area's growing popularity and limited rental inventory.
In 2023 and 2024, Seville's housing market showed signs of stabilization after years of rapid growth. The average home price in 2023 was $630,955, a slight decrease from the 2022 peak. However, in 2024, prices rebounded to $652,654, indicating continued market strength. Notably, federal interest rates remained elevated at 5.02% in 2023 and 5.33% in 2024, which could impact future homebuying activity.
Looking ahead, predictive models suggest a continued upward trajectory for both home prices and rents in Seville over the next five years. Average home prices are projected to increase by approximately 3-5% annually, potentially reaching around $755,000 by 2029. Rent prices are expected to follow a similar trend, with an estimated annual growth of 2-3%, potentially reaching an average of $2,350 per month by 2029.
In summary, Seville has demonstrated robust growth in homeownership and property values over the past decade. The neighborhood's resilience in maintaining high homeownership rates, even amidst rising interest rates, speaks to its desirability. While the rental market has shrunk, it remains competitive with steadily increasing prices. As Seville continues to evolve, it is likely to remain an attractive area for both homeowners and investors, with sustained growth in property values and rental rates expected in the coming years.
