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Zip Code 77523: Mont Belvieu's Rising Home Values and Ownership Rates Amid Rapid Growth
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
Mont Belvieu, located in zip code 77523 in Texas, has experienced significant growth and changes in its housing market over the past decade. This area has seen a steady increase in population, rising from 17,873 in 2010 to 28,097 in 2022. The homeownership rate has remained relatively stable, fluctuating between 79% and 85% during this period. Meanwhile, average home prices have shown a consistent upward trend, while average rent prices have also increased, albeit with some fluctuations.
The relationship between homeownership rates and average home prices in Mont Belvieu reveals an interesting dynamic. Despite the substantial increase in average home prices from $183,407 in 2010 to $360,916 in 2022, the homeownership rate has remained relatively high and stable. In 2013, when the average home price was $196,875, the homeownership rate was 79%. By 2022, with average home prices nearly doubling to $360,916, the homeownership rate slightly increased to 82%. This suggests that the local economy and income levels have likely kept pace with rising home values, allowing residents to maintain high levels of homeownership.
Federal interest rates have played a role in shaping homeownership trends in Mont Belvieu. The period from 2010 to 2021 saw historically low interest rates, ranging from 0.08% to 2.16%. This low-interest environment likely contributed to the sustained high homeownership rates observed during this time. For instance, in 2020, when the federal interest rate dropped to 0.38%, the homeownership rate peaked at 85%. However, as interest rates began to rise in 2022 to 1.68%, we see a slight decrease in homeownership to 82%, suggesting a potential correlation between higher interest rates and slightly lower homeownership rates.
Renter percentages and average rent prices in Mont Belvieu have shown some variability. In 2013, when average rent was $1,035, the renter-occupied percentage was 21%. By 2022, with average rent increasing to $1,475, the renter percentage decreased slightly to 18%. This trend suggests that despite rising rent prices, the proportion of renters in the community has remained relatively stable, possibly due to the strong local economy and the preference for homeownership in the area. The population growth from 20,172 in 2013 to 28,097 in 2022 may have also contributed to the increased demand for rental properties, supporting higher rent prices.
Looking at the most recent data, the average home price in Mont Belvieu for 2023 was $358,347, showing a slight decrease from 2022. However, in 2024, the average home price has increased slightly to $360,362. Concurrently, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homeownership trends and housing affordability in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in Mont Belvieu will continue to rise, albeit at a more moderate pace due to the higher interest rate environment. We project that by 2029, average home prices could reach approximately $400,000 to $425,000. For average rent prices, we expect a continued upward trend, potentially reaching around $1,700 to $1,800 per month by 2029, assuming steady population growth and economic stability in the area.
In summary, Mont Belvieu has demonstrated resilience in its housing market, maintaining high homeownership rates despite significant increases in home prices. The area has benefited from a period of low interest rates, which supported homeownership. However, recent increases in interest rates may pose challenges to this trend. The rental market has shown steady growth, reflecting the area's population increase and economic vitality. As we look to the future, Mont Belvieu is likely to continue experiencing moderate growth in both home prices and rent, shaped by broader economic factors and local demographic trends.
