Renter percentages in South Valley have inversely mirrored the homeownership trends, decreasing from 31% in 2013 to 26% in 2022. Despite this decrease, average rent prices have shown an overall upward trend, rising from $937 in 2013 to $1,080 in 2022, a 15.3% increase. The population of South Valley has remained relatively stable during this period, with 8,394 residents in 2013 and 8,590 in 2022, suggesting that the increase in rent prices may be more influenced by market factors than population pressure.

In 2023 and 2024, the housing market in South Valley continued its upward trajectory. The average home price reached $147,640 in 2023 and further increased to $159,127 in 2024, representing a 14.1% increase over two years. This growth occurred despite a significant rise in federal interest rates, which reached 5.02% in 2023 and 5.33% in 2024. These higher interest rates typically make borrowing more expensive, yet the continued rise in home prices suggests strong demand in the local market.

Looking ahead, predictive models suggest that the upward trend in both home prices and rent prices is likely to continue over the next five years. Based on historical data and current market conditions, average home prices in South Valley could potentially reach $180,000 to $200,000 by 2029. Average rent prices may also continue to climb, potentially reaching $1,200 to $1,300 per month in the same timeframe.

In summary, South Valley has demonstrated a robust housing market with increasing homeownership rates and rising property values. The neighborhood has shown resilience in the face of changing interest rates, with home prices continuing to appreciate even as borrowing costs have increased. The rental market, while shrinking in terms of percentage of residents, has seen steady increases in average rents. These trends point to a strong demand for housing in the area and suggest that South Valley remains an attractive location for both homeowners and investors.