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Somerton, Arizona: Home Values Double as Ownership Rises in Dynamic Market
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
Somerton, Arizona, a vibrant city in Yuma County, is known for its rich agricultural heritage and growing community. Over the past decade, Somerton has experienced significant changes in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market dynamics.
The homeownership rate in Somerton has shown a general upward trend, increasing from 70% in 2013 to 74% in 2022. This rise in homeownership coincides with a substantial increase in average home prices. In 2013, the average home price in Somerton was $101,582, which steadily climbed to $249,357 by 2022, representing a remarkable 145% increase over this period. The most significant jump occurred between 2020 and 2022, with average home prices rising from $170,625 to $249,357, a 46% increase in just two years.
Federal interest rates have played a crucial role in shaping homeownership trends in Somerton. The period from 2013 to 2016 saw historically low interest rates, ranging from 0.09% to 0.40%, which likely contributed to the steady increase in homeownership from 70% to 72% during this time. As interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), homeownership rates remained relatively stable, fluctuating between 71% and 72%. Interestingly, despite the sharp drop in interest rates in 2020 and 2021 (0.38% and 0.08% respectively), homeownership rates didn't see a dramatic increase, possibly due to economic uncertainties during the pandemic.
The rental market in Somerton has experienced fluctuations in both renter percentages and average rent prices. The percentage of renters decreased from 30% in 2013 to 26% in 2022. Despite this decrease, average rent prices have shown an overall upward trend. In 2013, the average rent was $659, which increased to $854 by 2022, representing a 30% rise. Notably, there was a significant spike in average rent prices in 2019, reaching $902, before slightly declining in subsequent years. This trend may be attributed to changes in population density, which peaked at 2,489 people per square mile in 2019 before decreasing to 2,284 in 2022.
In 2023 and 2024, Somerton's housing market continued its upward trajectory, albeit at a slower pace. The average home price in 2023 was $258,381, a 3.6% increase from 2022. In 2024, it further rose to $261,249, marking a modest 1.1% increase from the previous year. Interestingly, this slower growth coincides with higher federal interest rates, which stood at 5.02% in 2023 and 5.33% in 2024, potentially dampening housing demand.
Looking ahead, predictive models suggest that average home prices in Somerton may continue to rise over the next five years, but at a more moderate pace compared to the rapid growth seen in recent years. Average rent prices are also expected to increase, driven by ongoing population growth and potential shifts in housing preferences. However, the rate of increase for both home prices and rents may be tempered by higher interest rates and economic factors.
In summary, Somerton has witnessed a significant increase in homeownership rates and average home prices over the past decade, with a particularly sharp rise in recent years. The rental market has seen more moderate growth in prices despite a decrease in the percentage of renters. These trends reflect a complex interplay of factors, including population growth, economic conditions, and federal interest rate policies. As Somerton continues to evolve, its housing market is likely to remain dynamic, balancing growth with affordability concerns.
