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Stewart Gulch: Rising Home Values and Declining Ownership in Boise's Scenic Suburb
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Stewart Gulch, a neighborhood in Boise City, Idaho, has experienced significant changes in its housing market over the past decade. This area has seen fluctuations in homeownership rates and substantial increases in average home prices, reflecting broader trends in the Boise real estate market. The neighborhood has maintained a high rate of owner-occupied housing, though this has decreased slightly over time, while average home prices have shown a strong upward trend.
The homeownership rate in Stewart Gulch has experienced a gradual decline from 2013 to 2022. In 2013, the neighborhood boasted an impressive 98% owner-occupied housing rate. However, by 2022, this figure had decreased to 82%. Despite this decline, Stewart Gulch still maintains a significantly higher rate of homeownership compared to national averages. Concurrently, average home prices in the area have shown a remarkable upward trajectory. In 2013, the average home price was $491,902, which more than doubled to $1,245,481 by 2022. This substantial increase in home values may have contributed to the slight decrease in homeownership rates, as rising prices potentially made homeownership less attainable for some residents.
Federal interest rates have played a role in shaping homeownership trends in Stewart Gulch. The period from 2013 to 2016 saw historically low interest rates, hovering around 0.1% to 0.4%. During this time, homeownership rates remained high, above 90%. As interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, there was a corresponding decrease in homeownership rates. This aligns with the general trend of lower interest rates encouraging homeownership due to more affordable financing options.
The renter population in Stewart Gulch has grown from a mere 2% in 2013 to 18% in 2022. This increase in renters coincides with changes in average rent prices. In 2013, the median rent was $1,750, which decreased to $936 by 2022. This decrease in average rent prices, coupled with rising home prices, may have made renting a more attractive option for some residents. The population of Stewart Gulch has also fluctuated during this period, from 637 in 2013 to 899 in 2022, which could have influenced the demand for rental properties.
Looking at more recent data, the average home price in Stewart Gulch saw a slight decrease from $1,245,481 in 2022 to $1,177,875 in 2023, followed by a small increase to $1,189,084 in 2024. This recent stabilization in home prices occurs alongside a significant increase in federal interest rates, which rose from 1.68% in 2022 to 5.02% in 2023 and 5.33% in 2024. These higher interest rates may be contributing to a cooling of the rapid home price appreciation seen in previous years.
Applying predictive models to forecast 5-year trends, it's anticipated that average home prices in Stewart Gulch will continue to appreciate, albeit at a more moderate pace than seen in the early 2020s. The current high interest rate environment may temper price growth in the short term, but the desirability of the area and limited housing supply could sustain upward pressure on prices. Average rent prices are expected to stabilize or potentially increase slightly as the rental market adjusts to changes in homeownership rates and overall housing affordability.
In summary, Stewart Gulch has maintained a high rate of homeownership despite recent declines, while experiencing substantial growth in average home prices. The interplay between federal interest rates, homeownership rates, and housing prices has been evident, with lower rates generally corresponding to higher homeownership. The rental market has grown, potentially influenced by rising home prices and population changes. Recent data suggests a stabilization in the housing market, with future trends likely to show continued but more moderate appreciation in both home prices and rents.
