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Weslaco's Housing Market: Rising Home Values and Ownership Trends in a Growing Texas City
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
Weslaco, a vibrant city in Texas's Rio Grande Valley, has experienced significant changes in its housing market over the past decade. This growing community has seen fluctuations in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local dynamics.
From 2013 to 2022, Weslaco's homeownership rate showed a slight overall decline, moving from 64% to 62%. During this same period, average home prices in the city saw a significant increase. In 2013, the average home price was $76,983, which steadily rose to $151,885 by 2022, representing a remarkable 97% increase over nine years. This substantial growth in home values occurred despite the minor decrease in homeownership, suggesting strong demand in the housing market.
The relationship between federal interest rates and homeownership rates in Weslaco shows some correlation. For instance, as interest rates remained low from 2013 to 2016 (ranging from 0.11% to 0.40%), homeownership rates in Weslaco increased from 64% to 67%. However, as interest rates began to rise more sharply from 2017 onwards, reaching 1.68% in 2022, homeownership rates in Weslaco gradually declined to 62%, illustrating the impact of higher borrowing costs on homebuying decisions.
Regarding rental trends, the percentage of renters in Weslaco increased from 36% in 2013 to 38% in 2022. This rise in renters coincided with an increase in average rent prices. In 2013, the average rent was $725, which grew to $814 by 2022, marking a 12.3% increase. The growth in both renter population and rent prices suggests a strong rental market, possibly driven by those unable to enter the increasingly expensive housing market.
In 2023 and 2024, Weslaco's housing market continued its upward trajectory. The average home price reached $166,806 in 2023 and further increased to $176,780 in 2024, representing a 16.4% growth over two years. This occurred despite rising federal interest rates, which stood at 5.02% in 2023 and 5.33% in 2024, indicating robust demand in the local real estate market.
Looking ahead, based on the observed trends, we can project continued growth in both average home prices and rent prices over the next five years. Average home prices could potentially reach around $220,000 by 2029, assuming a similar growth rate. Average rent prices might increase to approximately $950 per month. However, these projections could be influenced by various factors including economic conditions, local development, and housing policies.
In summary, Weslaco has experienced a significant increase in average home prices and a moderate rise in average rent prices over the past decade. While homeownership rates have slightly decreased, the overall housing market remains strong, with both home values and rents continuing to climb. The city's growing population and economic development are likely to sustain these trends in the coming years, making Weslaco an interesting market for both homeowners and investors.
