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Bath Beach: Average Home Values and Ownership Trends in a Waterfront Brooklyn Neighborhood
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
Bath Beach, a charming neighborhood in Brooklyn, New York, has experienced significant changes in its housing market over the past decade. Known for its mix of residential areas and proximity to the waterfront, Bath Beach has seen fluctuations in homeownership rates and housing prices that reflect broader economic trends and local market dynamics.
The homeownership rate in Bath Beach has remained relatively stable, hovering around 38-40% from 2013 to 2022. However, there have been slight variations that correspond with changes in average home prices. In 2013, the homeownership rate was 40%, with an average home price of $628,562. As average home prices steadily increased, reaching a peak of $841,380 in 2018, the homeownership rate dipped slightly to 38%. This suggests that rising home prices may have made it more challenging for some residents to transition from renting to owning.
The relationship between federal interest rates and homeownership rates in Bath Beach follows a typical pattern. When interest rates were at historic lows between 2013 and 2016 (ranging from 0.09% to 0.4%), the homeownership rate remained steady at around 38-40%. This stability in homeownership during a period of low interest rates indicates that other factors, such as high home prices, may have counteracted the potential boost in homeownership that low interest rates typically encourage.
Renter percentages in Bath Beach have shown a slight upward trend, increasing from 60% in 2013 to 62% in 2022. This increase in renters correlates with rising average rent prices, which grew from $1,185 in 2013 to $1,733 in 2022, a 46% increase over nine years. The population of Bath Beach also grew during this period, from 30,548 in 2013 to 33,315 in 2022, potentially contributing to increased demand for rental properties and subsequent rent price increases.
Looking at the most recent data, average home prices in Bath Beach decreased to $749,361 in 2023 and further to $741,261 in 2024. This decline coincides with a significant increase in federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024. These higher interest rates likely contributed to the cooling of home prices by making mortgages more expensive and reducing buyer demand.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in Bath Beach may continue to face downward pressure in the short term due to high interest rates. However, as the market adjusts, prices could stabilize and potentially see modest growth. Average rent prices are expected to continue their upward trajectory, albeit at a slower pace, driven by the neighborhood's steady population growth and the high cost of homeownership.
In summary, Bath Beach has demonstrated a resilient housing market with a relatively stable homeownership rate despite significant increases in both home prices and rents over the past decade. The recent cooling of home prices, coupled with rising interest rates, may present new dynamics in the local real estate market. The trend towards renting is likely to persist, supported by population growth and the continued high cost of homeownership in the area.
