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Seward, Minneapolis: Rising Home Values and Shifting Ownership in a Riverside Neighborhood
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
The Seward neighborhood in Minneapolis, Minnesota, has experienced significant changes in its housing market over the past decade. This analysis focuses on the trends in home values, ownership rates, and rental market dynamics from 2017 to 2024, with projections extending to 2029. Homeownership rates in Seward have shown a gradual increase, rising from 31% in 2017 to 35% in 2022. This trend coincided with a substantial increase in average home prices, which grew from $241,774 in 2017 to $326,570 in 2022, representing a 35% increase over five years. The appreciation in home values likely contributed to the growing appeal of homeownership in the neighborhood.
The relationship between federal interest rates and homeownership rates in Seward generally followed expected patterns. As interest rates remained relatively low from 2017 to 2020 (ranging from 1% to 2.16%), homeownership rates increased from 31% to 33%. However, despite a significant rise in interest rates to 1.68% in 2022, homeownership in Seward continued to increase to 35%, suggesting that other local factors may have influenced this trend.
Renter percentages in Seward have slightly decreased, moving from 69% in 2017 to 65% in 2022. During this period, average rent prices experienced notable fluctuations. The average rent was $940 in 2017, remaining relatively stable until 2020 when it increased to $1,001. A significant jump occurred in 2021, with average rent reaching $1,110, before slightly decreasing to $1,016 in 2022. These rent price changes, coupled with the increasing home values, may have influenced some renters to transition to homeownership, contributing to the slight decrease in the renter population.
Recent data shows that average home prices in Seward slightly decreased from $326,570 in 2022 to $323,322 in 2023, before showing a marginal increase to $324,428 in 2024. This recent stabilization in home prices occurs against a backdrop of significantly higher interest rates, which rose to 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homebuying activity in the neighborhood.
Predictive models forecast that average home prices in Seward will continue a moderate upward trajectory, potentially reaching around $350,000 by 2029. This projection is based on the historical appreciation rate and assumes a continuation of current economic conditions. For average rent prices, a steady increase is expected, potentially reaching approximately $1,200 per month by 2029, reflecting ongoing demand for rental properties in the area.
In conclusion, Seward has demonstrated resilience in its housing market, with increasing homeownership rates despite rising home prices. The neighborhood has maintained a predominantly renter-occupied status, but with a gradual shift towards more owner-occupied units. The interplay between home prices, rent costs, and interest rates will likely continue to shape the neighborhood's housing landscape in the coming years, with a trend towards balanced growth in both the rental and ownership markets.
