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Brookhaven, Georgia: Rising Home Values and Shifting Ownership Trends
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Brookhaven, Georgia: A Suburban Community's Housing Market Evolution Brookhaven, a suburban city in Georgia, has experienced significant changes in its housing market since its incorporation in 2012. Known for its diverse neighborhoods and proximity to Atlanta, Brookhaven has seen a general trend towards increased homeownership and rising average home and rent prices over the past decade. This analysis examines the relationship between homeownership rates, average home prices, and other factors influencing the local housing market.
Homeownership and Home Prices: A Positive Correlation The relationship between homeownership percentages and average home prices in Brookhaven has shown a positive correlation. In 2013, the homeownership rate was 45% with an average home price of $355,533. As average home prices steadily increased, reaching $529,293 in 2019, the homeownership rate also rose to 48%. This upward trend continued, with homeownership reaching 52% in 2022 while average home prices climbed to $657,291. This suggests that despite rising prices, more residents were able to enter the housing market, possibly due to strong local economic conditions and favorable lending environments.
Federal Interest Rates and Homeownership Trends Federal interest rates have played a significant role in shaping homeownership trends in Brookhaven. The period from 2013 to 2016 saw historically low interest rates, hovering around 0.1% to 0.4%. During this time, homeownership remained relatively stable at around 45-46%. As interest rates began to rise from 2017 onwards, reaching 1.83% in 2018, homeownership surprisingly increased to 49%. This trend continued into 2022, with homeownership at 52% despite interest rates climbing to 1.68%. This suggests that other factors, such as local economic growth and housing demand, may have outweighed the impact of rising interest rates on homeownership in Brookhaven.
Rental Market Dynamics Renter percentages and average rent prices in Brookhaven have shown an interesting dynamic. In 2013, 52% of residents were renters, with an average rent of $1,288. As the population grew from 50,545 in 2013 to 58,631 in 2022, the percentage of renters decreased to 48%, while average rent prices increased to $1,630. This indicates that despite rising rent prices, more residents were transitioning to homeownership. The growth in population likely contributed to the overall increase in rent prices due to higher demand for housing.
Current Housing Market Status In 2023, Brookhaven's average home price reached $674,155, with federal interest rates at 5.02%. Moving into 2024, the average home price has further increased to $696,893, while interest rates have slightly risen to 5.33%. These figures represent the current state of Brookhaven's housing market, reflecting continued price growth despite higher interest rates.
Future Projections Looking ahead, predictive models suggest that Brookhaven's housing market will continue its upward trajectory. Over the next five years, average home prices are projected to increase by approximately 3-5% annually, potentially reaching around $800,000 by 2029. Average rent prices are expected to follow a similar trend, with an estimated annual increase of 2-4%, potentially surpassing $1,850 per month by 2029.
Conclusion In summary, Brookhaven has demonstrated a robust housing market characterized by increasing homeownership rates and rising property values. The city has shown resilience in the face of fluctuating interest rates, with homeownership rates continuing to climb even as home prices and interest rates have increased. The rental market, while experiencing price increases, has seen a slight decline in the percentage of renters, indicating a shift towards homeownership. As Brookhaven continues to grow and develop, these trends suggest a strong and competitive housing market in the coming years.
