Federal interest rates have significantly influenced homeownership trends in Bluff. From 2013 to 2020, interest rates remained historically low, ranging from 0.09% to 0.38%. Despite these favorable borrowing conditions, homeownership declined, suggesting other factors such as local economic conditions or housing supply may have had a stronger impact on the market. The slight increase in homeownership from 2021 to 2022 coincided with rising interest rates, from 0.08% in 2021 to 1.68% in 2022, possibly indicating a rush to purchase homes before rates increased further.

The renter population in Bluff has grown substantially, from 32% in 2013 to a peak of 84% in 2020, before slightly decreasing to 69% in 2022. This trend has been accompanied by a significant increase in average rent prices. In 2013, the average rent was $769, which rose to $1,279 by 2022, marking a 66.3% increase. The population growth from 5,634 in 2013 to 6,637 in 2022 likely contributed to the increased demand for rental properties, driving up prices.

In 2023, the average home price in Bluff decreased to $144,579, a 7.1% drop from 2022, while interest rates rose sharply to 5.02%. Moving into 2024, the average home price has rebounded to $151,611, a 4.9% increase from 2023, with interest rates further climbing to 5.33%. This recent data suggests a resilient housing market despite higher borrowing costs.

Predictive models forecast a continued upward trend in both average home prices and rent prices over the next five years. Home prices are expected to increase by approximately 3-5% annually, potentially reaching around $175,000 by 2029. Average rent prices are projected to rise at a similar rate, potentially surpassing $1,500 per month within the same timeframe.

In conclusion, Bluff has transformed from a majority homeowner neighborhood to one dominated by renters, with recent indications of a gradual return to homeownership. Average home prices and rent prices have both shown substantial increases over the past decade, despite fluctuations. The neighborhood's growing population and changing demographics continue to shape its housing market, with predictions suggesting ongoing growth in both home values and rental costs in the coming years.