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South Belt - Ellington: Rising Home Values and Stable Ownership Near Ellington Airport
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
South Belt - Ellington, a dynamic neighborhood in Houston, Texas, has witnessed substantial changes in its housing market over the past decade. The area has experienced fluctuations in homeownership rates, with a general trend towards increased renting, while average home prices have shown a consistent upward trajectory. Average rent prices have also increased, albeit at a more moderate pace.
The homeownership rate in South Belt - Ellington has varied over the years, with a notable decline from 2013 to 2017, followed by a slight recovery. In 2013, the homeownership rate was 61%, but it decreased to 56% by 2017. This decline coincided with a significant increase in average home prices, which rose from $110,570 in 2013 to $156,827 in 2017, representing a 41.8% increase over four years. However, from 2017 to 2022, there was a reversal in this trend, with homeownership rates increasing from 56% to 61%, despite continued growth in average home prices, which reached $242,568 by 2022.
The relationship between federal interest rates and homeownership rates in South Belt - Ellington reveals interesting patterns. From 2013 to 2016, when interest rates were at historic lows (ranging from 0.09% to 0.40%), homeownership rates actually declined. This suggests that other factors, such as rapidly increasing home prices, may have outweighed the benefits of low interest rates for potential buyers. However, as interest rates began to rise more significantly from 2017 onwards, homeownership rates in the neighborhood started to recover, possibly indicating a "buy now before rates go higher" mentality among residents.
Renter percentages in South Belt - Ellington have generally mirrored the inverse of homeownership trends. The proportion of renters increased from 37% in 2013 to a peak of 42% in 2017, before declining slightly to 39% by 2022. Average rent prices have shown a consistent upward trend, rising from $1,229 in 2013 to $1,438 in 2022, an increase of 17% over nine years. This increase in rent prices, while significant, has been less dramatic than the rise in home prices over the same period. The population growth in the neighborhood, from 82,918 in 2013 to 91,375 in 2022, likely contributed to the increased demand for rental properties and the subsequent rise in rent prices.
Looking at the most recent data, average home prices in South Belt - Ellington continued to rise in 2023 and 2024, reaching $247,487 and $251,605 respectively. This represents a modest increase of 3.7% from 2022 to 2024, indicating a potential slowdown in the rapid price growth seen in previous years. Interestingly, federal interest rates have increased significantly during this period, reaching 5.02% in 2023 and 5.33% in 2024, which could potentially impact future homeownership rates and housing market dynamics in the neighborhood.
Applying predictive models to forecast 5-year trends, it's anticipated that average home prices in South Belt - Ellington will continue to rise, but at a more moderate pace than seen in recent years. The average home price could potentially reach around $275,000 to $285,000 by 2029. Average rent prices are also expected to increase, possibly reaching $1,600 to $1,700 per month in the same timeframe. These projections assume a continuation of current economic conditions and local market trends.
In summary, South Belt - Ellington has experienced significant changes in its housing market over the past decade. The neighborhood has seen a recovery in homeownership rates after a period of decline, despite substantial increases in average home prices. Rent prices have also risen, but at a slower rate than home prices. The interplay between federal interest rates, home prices, and homeownership rates highlights the complex dynamics at work in the local housing market. As the neighborhood continues to grow and evolve, it will be crucial to monitor these trends and their impact on residents and potential homebuyers in the area.
