Loading Content...
West Congress: Shifting Home Values and Ownership in Austin's Dynamic Neighborhood
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 Congress, a vibrant neighborhood in Austin, Texas, has experienced significant changes in its housing market over the past decade. This area has seen notable shifts in homeownership rates, average home prices, and rent prices, reflecting broader economic trends and local market conditions.
From 2013 to 2022, West Congress witnessed a decline in homeownership rates, dropping from 36% to 29%. This decrease coincided with a substantial increase in average home prices, which rose from $194,345 in 2013 to $559,515 in 2022, marking a 188% increase over nine years.
The relationship between federal interest rates and homeownership rates in West Congress aligns with established economic trends. When interest rates were at historic lows between 2013 and 2016 (ranging from 0.11% to 0.40%), the neighborhood saw its highest homeownership rates of the decade, peaking at 45% in 2015. However, as interest rates began to rise more significantly from 2017 onwards, reaching 1.68% in 2022, homeownership rates declined to 29%.
The percentage of renters in West Congress increased from 64% in 2013 to 71% in 2022. This shift towards renting was accompanied by fluctuations in average rent prices. In 2013, the average rent was $627 per month, rising to $1,495 by 2022, a 138% increase. However, this increase was not linear, with notable dips in 2017 and 2018 when average rents fell to $651 and $666 respectively, before climbing again in subsequent years.
Recent data from 2023 and 2024 shows a correction in the housing market. The average home price in West Congress decreased from $559,515 in 2022 to $503,013 in 2023, and further to $470,965 in 2024, representing a 15.8% decrease over two years. Simultaneously, federal interest rates have risen sharply, reaching 5.02% in 2023 and 5.33% in 2024, likely contributing to the cooling of home prices.
Applying predictive models to forecast 5-year trends, it is anticipated that average home prices in West Congress may stabilize or experience modest growth as the market adjusts to higher interest rates. Average rent prices are likely to continue their upward trajectory, albeit at a more moderate pace, driven by the increasing proportion of renters in the neighborhood. However, this trend could be influenced by new housing developments or changes in local economic conditions.
In summary, West Congress has undergone significant changes in its housing market over the past decade. The neighborhood has seen a shift from homeownership to renting, coinciding with substantial increases in both home prices and rent. Recent data suggests a cooling in the housing market, likely influenced by rising interest rates. These trends reflect the dynamic nature of Austin's real estate market and the complex interplay between economic factors and housing demand in this evolving neighborhood.
