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Average Home Values Soar in Vale and Hamilton Hill: A Decade of Housing Market Transformation
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
Vale and Hamilton Hill, a neighborhood in Schenectady, New York, has undergone significant changes in its housing market over the past decade. This urban area has experienced a notable trend of decreasing homeownership rates alongside increasing average home and rent prices. The shift has transformed the neighborhood's demographic landscape and housing affordability.
The homeownership rate in Vale and Hamilton Hill has shown a steady decline, dropping from 30% in 2013 to 24% in 2022. Concurrently, the average home price in the neighborhood has seen a dramatic increase. In 2013, the average home price stood at $39,799, but by 2022, it had risen substantially to $108,672, marking a 173% increase over nine years. This inverse relationship between homeownership rates and average home prices suggests that the rising property values may be making homeownership increasingly challenging for residents in the neighborhood.
Federal interest rates have played a role in these homeownership trends. From 2013 to 2016, when interest rates were extremely low, ranging from 0.11% to 0.40%, homeownership rates still declined from 30% to 25%. This trend indicates that other factors, such as the rapidly increasing home prices, may have outweighed the potential benefits of low interest rates for potential homebuyers in Vale and Hamilton Hill.
As homeownership decreased, the percentage of renters in Vale and Hamilton Hill increased from 70% in 2013 to 76% in 2022. During this period, average rent prices also rose, albeit less dramatically than home prices. The average rent increased from $774 in 2013 to $800 in 2022, a 3.4% increase. The population of the neighborhood grew slightly from 7,403 in 2013 to 7,436 in 2022, which may have contributed to the increased demand for rental properties and the subsequent rise in average rent prices.
In 2023, the average home price in Vale and Hamilton Hill reached $122,308, with federal interest rates at 5.02%. By 2024, the average home price further increased to $137,706, while interest rates rose slightly to 5.33%. These figures indicate a continuing trend of rising home prices despite higher interest rates, which could further impact homeownership rates in the neighborhood.
Looking ahead, based on the historical data and current trends, it is predicted that average home prices in Vale and Hamilton Hill will continue to rise over the next five years. If the current trajectory holds, average home prices could potentially reach around $180,000 to $200,000 by 2029. Average rent prices are also likely to increase, potentially reaching $950 to $1,000 per month in the same timeframe.
In summary, Vale and Hamilton Hill has experienced a significant shift towards a renter-majority population, with homeownership rates declining as average home prices have more than doubled over the past decade. The neighborhood has also seen moderate increases in average rent prices, albeit at a slower pace than home prices. These trends, combined with fluctuating interest rates, have reshaped the housing landscape in this Schenectady neighborhood, potentially affecting affordability and accessibility for both homeowners and renters.
