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Hoping for a drop in El Paso property prices in 2025? Don’t count on it.
Despite economic shifts, the El Paso market is poised for growth, with increasing demand and limited housing supply driving prices up.
Let’s explore why property prices in this vibrant city are expected to rise in 2025.
We rely on solid, up-to-date data and statistics from multiple credible sources, ensuring our analysis is grounded in reality.
By thoroughly examining this information, we draw our own conclusions, which we share at the end of this blog post. Enjoy the read!
How this content was produced 🔎📝
This article offers thoughtful insights and analysis based on reliable sources, but it should not be considered financial advice. We work hard to research, compile, and analyze data to give you a well-informed perspective. However, as you can guess, our analysis involves subjective choices, such as source selection and methods, and it cannot fully capture the market's complexity. Please, always do your own research, consult professionals, and make decisions based on your own judgment. Any financial risks or losses are your responsibility. Additionally, you should know that we have no affiliation with the sources mentioned, ensuring our analysis is completely impartial.
1) El Paso boasts an impressive livability score of 81, highlighting its excellent quality of life
Signal strength: strong
The livability score of 81 in El Paso is considered excellent because it reflects a high quality of life for residents.
One reason for this high score is the strong sense of community that El Paso offers, which is often highlighted by locals. Additionally, the city boasts affordable living costs compared to other major cities, making it attractive for new residents.
Moreover, El Paso is known for its low crime rates, which contribute significantly to its livability score and appeal to families and retirees. These factors combined suggest that more people will be drawn to El Paso, increasing demand for housing and potentially driving up prices in 2025.
However, if the livability score were to drop below 70, it might indicate declining conditions, which could deter potential buyers and investors.
Source: AreaVibes
2) In El Paso, there are only about 0.38 homes for each person, which is quite limited
Signal strength: strong
The fact that there is around 0.38 home per inhabitant in El Paso indicates a limited housing supply relative to the population.
When the number of homes is low compared to the number of people, it often leads to increased competition for available housing, which can drive prices up. In El Paso, this situation is compounded by the city's unique position as a border city with a growing economy, attracting more residents and businesses.
Locals know that El Paso's proximity to Fort Bliss, one of the largest military complexes in the United States, contributes to a steady demand for housing. This demand is not just from military personnel but also from civilian employees and contractors who work in and around the base.
If the ratio of homes to inhabitants were to increase significantly, say to 0.5 home per inhabitant, it might indicate a more balanced market, potentially stabilizing or even reducing housing prices.
Source: USCensus
We created this infographic to show how property prices in El Paso compare to other big cities in Texas. It shows the median price as well as the price per sqft, making it easy to see which places might offer the best value. We hope you find it helpful.
3) El Paso home values have risen by 1.5% since last year, and this trend may persist
Signal strength: strong
The fact that home values in El Paso have already changed by 1.5% since last year is a strong indicator of a rising trend in the housing market. When we see such a change, it often suggests that the demand for homes is increasing, which can lead to higher prices over time.
Currently, the median home price in El Paso is around $223,042, and this figure provides a baseline for understanding the market's growth potential. Additionally, the median sales price per square foot is about $150, which is another metric that investors use to gauge the value of properties.
These numbers, combined with the recent increase in home values, suggest that housing prices are likely to continue rising as we approach 2025. For investors, this could mean a good opportunity to enter the market before prices climb even higher.
However, if we were to see a significant drop in demand or economic downturn, this signal might not hold, and prices could stabilize or even decrease.
Source: Redfin
4) Three major websites confidently predict that home prices in El Paso will rise in 2025
Signal strength: strong
There are currently three major websites forecasting a positive growth for home prices in El Paso in 2025, which is a promising signal for potential investors.
Among these forecasts, Realtor is the most optimistic with an expected increase of 8.40% in home prices, followed by Redfin at 4% growth, and Zillow predicting a 3.50% rise. The significant gap between Realtor's and Zillow's forecasts suggests varying levels of confidence in the market's potential.
While these predictions are encouraging, it's important to remember that forecasts should be taken with caution as they are based on assumptions and models that may not account for unforeseen changes. Therefore, we will also rely on strong, reliable, and current data to make a well-informed investment decision.
If these forecasts were to predict a negative growth or stagnation in home prices, it would signal a potential downturn in the market.
Sources: ZillowForecasts, RedfinForecasts, RealtorForecasts
Our team designed this infographic to show how competitive the real estate market in El Paso is vs. other major cities in Texas. It shows the percentage of sales above the list price, a key indicator of market competition.
5) El Paso's "vacancy rate" is just 8.0%, showing it's a bustling and competitive market
Signal strength: moderate
The vacancy rate in El Paso is currently at 8.0%, which is considered very low. This low vacancy rate indicates that the housing market is highly occupied and competitive, suggesting that demand for housing is strong.
When demand is high and supply is limited, it often leads to increased housing prices as more people compete for fewer available homes. In such a market, properties that are easily rented are typically well-maintained single-family homes located in desirable neighborhoods.
In El Paso, areas like Westside with good schools and amenities are particularly attractive to renters. This makes them prime targets for investors looking to capitalize on the rising demand and potential price increases.
If the vacancy rate were to rise above 10%, it might indicate a shift towards a less competitive market, potentially stabilizing or even decreasing housing prices.
Sources: NeighborhoodScout, DataUSA, USCensus
6) El Paso's median home price remains 49% lower than the national average
Signal strength: minimal
The fact that El Paso still has a median home price 49% below the national average suggests that there is significant room for growth in the housing market. This gap indicates that El Paso is an attractive option for potential homebuyers and investors, which could lead to increased demand and, consequently, rising prices.
In El Paso, the most expensive properties are likely to be luxury homes located in the West Side, where amenities and views are highly sought after. On the other hand, the cheapest properties are often small, older homes in the Lower Valley, where prices remain low due to less demand and fewer modern amenities.
As demand increases, these lower-priced areas might see a rise in value, making them appealing for investment. However, if the median home price in El Paso were to rise above the national average, it might indicate that the market has reached its peak, and further price increases could be limited.
Source: Zillow
This infographic we have made will show you how market values have changed during the last decade in El Paso vs other major places in Texas. Here, the percentage increase or decrease in market value will help you see long-term trends.
7) A local in El Paso could afford a house in about 3.9 years, which is reasonable
Signal strength: minimal
In El Paso, it currently takes around 3.9 years for a local to buy a house, which is considered manageable. This is based on the median household income of approximately $57,317 and the median home price of about $223,042.
When the time it takes to buy a house is relatively short, it suggests that homes are more affordable for local residents, which can lead to increased demand. As demand rises, it often results in higher housing prices in the future.
For potential real estate investors, this scenario indicates a likely increase in property values by 2025, making it a potentially lucrative market. However, if the time to buy a house were to increase significantly, say to over 6 years for a local resident, it might suggest that prices are becoming too high, potentially slowing down demand.
Source: USCensus
8) In El Paso, about a quarter of homes sell for more than their listing price
Signal strength: minimal
In El Paso, around 25% of sales close at a price higher than the listing price. This indicates that buyers are willing to pay more than the asking price, suggesting strong demand.
When demand is high, it often leads to increased competition among buyers, which can drive prices up. This trend is a clear signal that housing prices are likely to rise in the near future.
For potential investors, this means that investing in El Paso real estate could be a profitable decision. However, if the percentage of sales closing above the listing price were to drop to below 10%, it might indicate a cooling market.
Source: Zillow
This infographic designed by our team breaks down the latest livability score in El Paso but also in other big cities in Texas. It provides a clear view of which locations offer the best overall living conditions, which is a good thing to know if you want to buy real estate.
9) Over the past decade, home prices in El Paso have consistently risen by an average of 6.3% each year
Signal strength: minimal
The fact that home prices in El Paso have appreciated at an average rate of 6.3% over the last decade is a noteworthy signal for potential investors. This consistent growth suggests that there has been a steady demand and an upward trend in home values, which can create a favorable environment for future price increases.
While this historical data is encouraging, it's important to remember that past performance doesn't guarantee future results. However, such a positive trend can still be a good indicator of potential future market conditions, as it reflects a pattern of growth that might continue.
Investors should consider this information as part of a broader analysis, as other factors like economic conditions and interest rates also play a crucial role in determining future prices. It's essential to look at the bigger picture, but historical appreciation rates can provide valuable insights into the market's potential.
If the appreciation rate were to drop significantly, say below 2% over a similar period, it might suggest a different trend and warrant a more cautious approach.
Source: NeighborhoodScout
So, are prices going to climb in El Paso in 2025? Absolutely
El Paso's housing market is poised for a price increase in 2025, driven by several compelling factors.
First, the city's impressive livability score of 81 highlights its excellent quality of life, attracting more residents and increasing housing demand. With only 0.38 homes per person, the limited supply further intensifies competition, pushing prices upward. Additionally, the 1.5% rise in home values over the past year indicates a continuing upward trend.
Moreover, forecasts from major websites predict a rise in home prices, with Realtor expecting an 8.40% increase. The low vacancy rate of 8.0% and the fact that 25% of homes sell above their listing price underscore the market's competitiveness. Finally, El Paso's median home price remains 49% lower than the national average, suggesting room for growth.
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