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West Bench, Boise: Rising Home Values and Ownership Amid Interest Rate Fluctuations
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
West Bench, a neighborhood in Boise City, Idaho, has experienced significant changes in its real estate market over the past decade. The area has seen a notable increase in homeownership rates, along with substantial growth in average home prices and rent prices. Homeownership in West Bench has shown a strong upward trend, increasing from 57% in 2014 to 69% in 2022. This rise in homeownership coincides with a remarkable surge in average home prices. In 2014, the average home price in West Bench was $156,578. By 2022, this figure had increased to $449,619, representing a 187% increase over eight years. This trend suggests a growing preference for homeownership in the neighborhood, potentially driven by long-term investment considerations and the desire for stability.
The relationship between federal interest rates and homeownership rates in West Bench follows a generally inverse pattern. As interest rates remained low between 2014 and 2016 (ranging from 0.09% to 0.40%), homeownership rates in the neighborhood fluctuated between 57% and 60%. When interest rates began to rise more significantly from 2017 onwards, reaching 1.68% in 2022, homeownership rates in West Bench continued to climb, reaching 69% in 2022. This trend suggests that while interest rates play a role, other factors such as local economic conditions and housing market dynamics may have had a stronger influence on homeownership decisions in this neighborhood.
The percentage of renters in West Bench has decreased from 43% in 2014 to 31% in 2022. Despite this decline, average rent prices have shown an overall upward trend. In 2014, the average rent was $966, which increased to $1,036 by 2022, representing a 7.2% increase. Notably, there was a significant spike in average rent in 2021, reaching $1,213, before moderating in 2022. These trends suggest that while the proportion of renters has decreased, the demand for rental properties remains strong, potentially due to factors such as population growth or changing demographics.
In 2023 and 2024, the real estate market in West Bench has shown some interesting developments. The average home price in 2023 was $416,895, representing a slight decrease from the 2022 peak. However, in 2024, the average home price has rebounded to $431,947. This trend occurs against the backdrop of significantly higher federal interest rates, which stood at 5.02% in 2023 and 5.33% in 2024. These higher interest rates may be influencing buying decisions and overall market dynamics in the neighborhood.
Looking ahead, predictive models suggest that average home prices in West Bench may continue to rise, albeit at a more moderate pace. Over the next five years, average home prices could potentially reach the $500,000 mark, assuming consistent economic growth and sustained demand in the area. Average rent prices are also expected to increase, potentially reaching around $1,200 to $1,300 per month within the next five years, driven by inflation and overall cost of living increases.
In summary, West Bench has demonstrated a clear trend towards increased homeownership, accompanied by significant growth in average home prices. While the renter population has decreased, average rent prices have generally increased, indicating a competitive rental market. The neighborhood's real estate market has shown resilience in the face of rising interest rates, suggesting strong underlying demand for housing in this area of Boise City.
