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South Suburan: Tripling Home Values and Surging Ownership Rates
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
South Suburan, a neighborhood in Fort Wayne, Indiana, has experienced significant changes in homeownership rates and housing prices over the past decade. The area has seen a general trend of increasing homeownership, rising average home prices, and fluctuating average rent prices. The percentage of owner-occupied homes in South Suburan has shown a consistent upward trend. In 2013, the homeownership rate was 28%, and it steadily increased to 48% by 2022. This growth in homeownership coincided with a substantial rise in average home prices. In 2013, the average home price was $41,396, and it more than doubled to $122,838 by 2022. This correlation suggests that as home values appreciated, more residents were motivated to invest in homeownership, possibly viewing it as a sound financial decision.
Federal interest rates have played a role in shaping homeownership trends in South Suburan. From 2013 to 2016, when interest rates were historically low (ranging from 0.11% to 0.40%), the homeownership rate increased from 28% to 31%. As interest rates began to rise more significantly from 2017 onwards, reaching 1.68% in 2022, the homeownership rate continued to climb, reaching 48% in 2022. This trend suggests that despite rising interest rates, other factors such as increasing home values and potentially improved economic conditions in the area encouraged homeownership.
The renter population in South Suburan has seen a corresponding decline as homeownership increased. In 2013, 72% of the housing units were renter-occupied, which decreased to 52% by 2022. Interestingly, average rent prices have shown significant fluctuations during this period. The average rent peaked at $708 in 2013, dropped to a low of $457 in 2016, and then rebounded to $511 by 2022. These fluctuations in rent prices, coupled with the increasing home values, may have influenced some renters to transition to homeownership.
In 2023 and 2024, the average home prices in South Suburan continued their upward trajectory, reaching $139,038 in 2023 and $152,099 in 2024. This represents a significant increase from the 2022 average of $122,838. Concurrently, federal interest rates have risen sharply, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homeownership trends in the neighborhood.
Looking ahead, based on the historical data and current trends, it's projected that average home prices in South Suburan will continue to rise over the next five years, potentially reaching around $200,000 by 2029. Average rent prices, which have been more volatile, are expected to stabilize and potentially increase moderately, possibly reaching $600 per month by 2029. These projections assume continued economic growth and stability in the region.
In summary, South Suburan has experienced a significant shift towards homeownership over the past decade, with the rate increasing from 28% to 48% between 2013 and 2022. This trend has been accompanied by substantial growth in average home prices, which more than tripled from $41,396 in 2013 to $152,099 in 2024. Despite rising interest rates, the appeal of homeownership in this neighborhood appears to remain strong, likely driven by the potential for property value appreciation and other local economic factors.
