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Upper Baseline: Fluctuating Home Values and Ownership in Little Rock
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Upper Baseline, a neighborhood in Little Rock, Arkansas, has experienced significant changes in its real estate market over the past decade. This area has seen fluctuations in homeownership rates and consistent growth in average home prices, reflecting broader economic trends and local market conditions.
The homeownership rate in Upper Baseline has varied notably from 2013 to 2022. Starting at 46% in 2013, it decreased to 40% in 2015, rebounded to 48% in 2019, and then declined again to 41% in 2022. During this same period, average home prices in the area have shown a general upward trend. In 2013, the average home price was $63,051, which increased significantly to $111,551 by 2022, representing a substantial 76.9% increase over this period.
The relationship between federal interest rates and homeownership rates in Upper Baseline shows some correlation. When interest rates were at historic lows between 2013 and 2016 (ranging from 0.09% to 0.4%), homeownership rates fluctuated between 40% and 46%. As interest rates began to rise more significantly from 2017 onwards, homeownership rates initially increased, reaching 48% in 2019 when the federal interest rate was 2.16%. However, the rate dropped to 41% by 2022 as interest rates climbed to 1.68%, suggesting other factors were also influencing homeownership decisions.
Renter percentages in Upper Baseline have generally moved inversely to homeownership rates, ranging from 52% to 60% between 2013 and 2022. The average rent prices have shown an overall upward trend during this period. In 2013, the average rent was $797, which increased to $853 by 2022, representing a 7% increase. Notably, there was a significant spike in average rent to $993 in 2021, before decreasing in 2022. The population of Upper Baseline decreased from 13,707 in 2010 to 12,887 in 2022, which may have influenced rental market dynamics.
In 2023 and 2024, Upper Baseline's real estate market showed signs of stabilization. The average home price in 2023 was $109,838, a slight decrease from 2022. In 2024, the average home price further decreased to $109,001. This trend coincides with significantly higher federal interest rates, which reached 5.02% in 2023 and 5.33% in 2024, potentially dampening home buying activity.
Looking ahead, based on recent trends, we can forecast that average home prices in Upper Baseline may experience modest growth over the next five years, potentially reaching around $120,000 by 2029. Average rent prices are likely to continue their upward trajectory, possibly exceeding $950 by 2029, assuming steady economic conditions and population trends.
In summary, Upper Baseline has experienced significant fluctuations in homeownership rates and consistent growth in average home prices over the past decade. The rental market has shown resilience with gradually increasing average rents. Recent stabilization in home prices, coupled with high interest rates, suggests a potential shift in the local real estate dynamics, which may influence future homeownership and rental trends in this Little Rock neighborhood.
