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Soaring Home Values and Shifting Ownership in Arizona Skyline, Mesa
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Arizona Skyline: A Decade of Housing Market Transformation Arizona Skyline, a neighborhood in Mesa, Arizona, has undergone significant changes in its housing market over the past decade. The area has experienced a notable shift from homeownership to renting, coupled with substantial increases in property values and rental prices. This analysis examines the trends in homeownership rates, average home prices, and rental market dynamics from 2013 to 2024. Declining Homeownership and Rising Property Values The homeownership rate in Arizona Skyline has seen a marked decline from 2013 to 2022. In 2013, 57% of residents owned their homes, but by 2022, this figure had dropped to 34%. Conversely, average home prices in the neighborhood increased dramatically during the same period. The average home price rose from $184,581 in 2013 to $473,631 in 2022, representing a substantial 156% increase over nine years. This inverse relationship between homeownership rates and average home prices suggests that rising property values may have made homeownership less attainable for many residents.
Impact of Federal Interest Rates on Homeownership Federal interest rates have played a significant role in shaping homeownership trends in Arizona Skyline. From 2013 to 2016, when interest rates were historically low (ranging from 0.11% to 0.40%), homeownership rates remained relatively stable, fluctuating between 57% and 61%. However, as interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), homeownership rates started to decline, dropping from 58% in 2017 to 54% in 2019. This downward trend continued into 2022, with homeownership falling to 34% as interest rates increased to 1.68%.
Rental Market Growth and Population Increase As homeownership declined, the percentage of renters in Arizona Skyline increased from 43% in 2013 to 66% in 2022. Correspondingly, average rent prices rose from $892 in 2013 to $1,168 in 2022, a 31% increase. The population of the neighborhood also grew during this period, from 1,492 residents in 2013 to 1,813 in 2022, potentially contributing to increased demand for rental properties and higher rent prices.
Recent Market Fluctuations and Interest Rate Increases In 2023, the average home price in Arizona Skyline decreased to $445,445, a 5.9% drop from 2022. This decline coincided with a significant increase in federal interest rates, which rose to 5.02% in 2023. Moving into 2024, the average home price has shown a slight recovery, increasing to $451,724. However, interest rates have continued to climb, reaching 5.33% in 2024, which may impact future homeownership trends in the neighborhood.
Future Projections for Arizona Skyline Looking ahead, based on historical trends and current market conditions, it is projected that average home prices in Arizona Skyline will continue to appreciate, albeit at a more moderate pace. Over the next five years, average home prices are expected to increase by approximately 3-4% annually. Average rent prices are anticipated to follow a similar trajectory, with projected annual increases of 2-3%. These forecasts take into account the current high interest rate environment and its potential impact on housing demand and affordability.
Conclusion Arizona Skyline has experienced a significant shift from homeownership to renting over the past decade, accompanied by substantial increases in both average home prices and average rent prices. The interplay between federal interest rates, property values, and demographic changes has shaped the neighborhood's housing landscape. As the community continues to evolve, it will be important to monitor these trends and their impact on residents' housing options and affordability.
