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Westbank, Gilbert: Rising Home Values and Ownership Amidst 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
Westbank, a neighborhood in Gilbert, Arizona, has experienced significant changes in its housing market over the past decade. This area, known for its suburban charm and proximity to amenities, has seen fluctuations in homeownership rates and property values. The neighborhood has generally maintained a high rate of owner-occupied homes, with average home prices showing a strong upward trend. Average rent prices have also increased, albeit at a more moderate pace.
The trend between homeownership percentage and average home prices in Westbank shows a strong correlation. In 2013, the homeownership rate was 74%, with average home prices at $223,488. As average home prices steadily increased, reaching $307,728 in 2018, the homeownership rate rose to 90%. This trend continued, with homeownership slightly decreasing to 80% in 2022, while average home prices surged to $548,229. This indicates that despite rising home values, Westbank remained an attractive area for homeowners.
Federal interest rates have played a significant role in homeownership trends in Westbank. From 2013 to 2016, when interest rates were historically low (ranging from 0.11% to 0.40%), homeownership increased from 74% to 84%. As interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), homeownership rates fluctuated but remained high, peaking at 90% in 2018. The ultra-low interest rates in 2020 and 2021 (0.38% and 0.08% respectively) coincided with homeownership rates of 87% and 81%, suggesting that other factors, such as the pandemic, may have influenced buying decisions during this period.
The trends in renter percentages and average rent prices in Westbank show an interesting pattern. In 2013, the renter-occupied percentage was 25%, with an average rent of $1,593. As the renter percentage decreased to 10% in 2018, average rent increased to $1,792. However, by 2022, the renter percentage rose to 20%, with average rent reaching $1,833. This suggests that while the neighborhood became more owner-dominated, rental prices continued to rise, possibly due to increased demand for the limited rental properties available or overall market appreciation.
In 2023 and 2024, Westbank's housing market showed signs of stabilization after years of rapid growth. The average home price in 2023 was $519,380, a slight decrease from the 2022 peak. However, in 2024, prices rebounded to $540,586. These changes occurred against a backdrop of significantly higher interest rates, with the federal interest rate rising to 5.02% in 2023 and 5.33% in 2024. These higher rates likely contributed to the brief cooling in home prices but did not prevent a recovery.
Looking ahead, predictive models suggest that average home prices in Westbank may continue to rise moderately over the next five years, albeit at a slower pace than the rapid increases seen in recent years. Average rent prices are also expected to increase, potentially at a rate slightly above inflation. These predictions are based on the neighborhood's historical trends, current market conditions, and broader economic factors.
In summary, Westbank has maintained a strong homeownership base despite significant increases in home values. The neighborhood has shown resilience in its housing market, with homeownership rates remaining high even as prices rose substantially. The rental market, while smaller, has seen steady increases in average rents. The recent stabilization in home prices, coupled with higher interest rates, suggests a more balanced market moving forward. These trends indicate that Westbank remains an attractive area for both homeowners and investors, with potential for continued, though more modest, appreciation in both home values and rental rates.
