Loading Content...
West Arrow, Claremont: Rising Home Values and Fluctuating 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
West Arrow, a neighborhood in Claremont, California, has experienced significant changes in homeownership rates and housing prices over the past decade. The area has seen a general trend of increasing average home prices, while ownership percentages have fluctuated. Average rent prices have also shown an upward trend, with some variations in recent years.
The relationship between homeownership rates and average home prices in West Arrow reveals interesting patterns. In 2013, the homeownership rate was 62%, with an average home price of $302,474. As home prices steadily increased, reaching $427,676 in 2017, the homeownership rate also rose to 68%. However, this trend did not continue linearly. By 2022, despite average home prices climbing to $654,839, the homeownership rate decreased to 61%. This suggests that rising home prices may have begun to exceed affordability for some residents.
Federal interest rates have influenced homeownership trends in West Arrow. From 2013 to 2016, interest rates remained very low, between 0.09% and 0.40%, coinciding with a period of relatively stable homeownership rates. As interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), fluctuations in homeownership rates were observed, with a peak of 73% in 2018 before declining again.
Renter percentages and average rent prices in West Arrow have shown distinct trends. In 2013, 38% of residents were renters, with an average rent of $1,289. Renter percentages decreased to 27% in 2018, while average rent increased to $1,954. However, by 2022, the renter percentage increased back to 39%, with average rent at $1,908. This suggests that despite rising rent prices, more residents opted for renting, possibly due to the steeper increase in home prices.
Recent data shows that average home prices in West Arrow continued to rise, reaching $663,301 in 2023 and $693,095 in 2024. This represents a 5.8% increase from 2022 to 2024. Simultaneously, federal interest rates have increased significantly, rising to 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homeownership trends in the neighborhood.
Predictive models forecast continued growth in average home prices over the next five years, albeit potentially at a slower rate due to higher interest rates. Average home prices could reach around $750,000 to $800,000 by 2029. Average rent prices are also likely to continue their upward trajectory, potentially reaching $2,200 to $2,400 per month in the same timeframe.
In summary, West Arrow has experienced a complex interplay between homeownership rates, average home prices, and rent prices. While home prices have consistently increased, homeownership rates have fluctuated, influenced by factors such as affordability and interest rates. The rental market has also seen growth, with rising average rents and a recent uptick in the percentage of renters. As interest rates remain high, this may continue to impact the balance between homeownership and renting in the coming years.
