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Soaring Home Values and Shifting Ownership Trends in Veterans Park, Boise 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
Veterans Park, a neighborhood in Boise City, Idaho, has experienced significant changes in its housing market over the past decade. This area has seen notable fluctuations in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market conditions. These changes have reshaped the demographic composition of the neighborhood.
The homeownership rate in Veterans Park has shown a general decline, decreasing from 44% in 2017 to 38% in 2022. Simultaneously, there has been a substantial increase in average home prices, rising from $137,025 in 2010 to $501,169 in 2022, marking a 266% increase over 12 years. This inverse relationship between homeownership rates and average home prices suggests that rising property values may have made homeownership less attainable for some residents.
Federal interest rates have played a crucial role in shaping homeownership trends in Veterans Park. During periods of historically low interest rates between 2020 and 2021 (0.38% and 0.08% respectively), there was a slight increase in homeownership from 36% to 39%. This aligns with the established trend that lower interest rates tend to encourage homeownership by making mortgage financing more affordable. However, as interest rates began to rise in 2022 to 1.68%, homeownership rates slightly decreased to 38%.
The percentage of renters in Veterans Park has increased from 56% in 2017 to 62% in 2022. This rise in renter-occupied units correlates with a significant increase in average rent prices, which grew from $753 in 2017 to $1,217 in 2022, representing a 62% increase over five years. The population of Veterans Park has remained relatively stable during this period, suggesting that the rising rent prices are likely driven by market demand and the overall increase in property values rather than a surge in population.
Recent data shows that average home prices in Veterans Park experienced a slight decrease from $501,169 in 2022 to $464,217 in 2023, followed by a modest increase to $472,624 in 2024. This recent trend occurs alongside a significant rise in federal interest rates, which increased to 5.02% in 2023 and further to 5.33% in 2024. These higher interest rates may be contributing to a cooling effect on home prices, as higher borrowing costs typically dampen demand in the housing market.
Applying predictive models to forecast 5-year trends, it is anticipated that average home prices in Veterans Park will continue to experience moderate growth, albeit at a slower pace than the rapid increases seen in the early 2020s. This projection is based on the current high interest rate environment, which is expected to persist in the near term. Average rent prices are likely to continue their upward trajectory, driven by the ongoing demand for rental properties in the area and the overall trend of increasing housing costs.
In conclusion, Veterans Park has undergone significant changes in its housing market over the past decade. The neighborhood has seen a shift towards a higher proportion of renters, accompanied by substantial increases in both average home prices and average rent prices. These trends reflect the complex interplay between economic factors, interest rates, and local market dynamics, shaping the accessibility and affordability of housing in this Boise City neighborhood.
