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Douglas High School Neighborhood: Rising Home Values and Stable Ownership in Lexington-Fayette
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
The Douglas High School neighborhood in Lexington-Fayette, Kentucky, has experienced notable changes in its housing market over the past decade. This area, known for its proximity to educational institutions, has maintained stable homeownership rates while seeing significant increases in both average home prices and rent prices. From 2013 to 2022, the neighborhood's homeownership rate remained steady at 60%. During this period, average home prices showed a substantial upward trend. In 2013, the average home price was $80,320, which steadily increased to $156,957 by 2022, representing a remarkable 95.4% increase over nine years. This trend suggests a growing demand for homeownership in the area, potentially driven by the neighborhood's desirable location and amenities.
The relationship between federal interest rates and homeownership rates in the Douglas High School neighborhood aligns with well-established economic principles. As interest rates remained historically low between 2013 and 2021, ranging from 0.08% to 0.14%, homeownership rates generally held steady. This period of low interest rates likely contributed to the maintenance of homeownership levels by making mortgage financing more accessible and affordable for potential buyers.
Rental trends in the neighborhood show interesting patterns. The percentage of renters remained constant at 40% from 2013 to 2022. However, average rent prices experienced significant fluctuations. In 2013, the average rent was $656, which decreased to $498 in 2016 before rising again to $935 in 2022, representing a 42.5% increase over the entire period. These changes in rent prices may reflect shifts in local housing demand, economic conditions, or changes in the quality and type of rental properties available.
Looking at the most recent data, the average home price in the Douglas High School neighborhood reached $173,341 in 2023 and further increased to $181,751 in 2024. This represents a 10.5% increase from 2022 to 2023 and a 4.9% increase from 2023 to 2024, indicating a continued upward trend in property values. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, which may impact future homeownership trends.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in the Douglas High School neighborhood will continue to rise, albeit at a potentially slower rate due to higher interest rates. We project average home prices could reach approximately $210,000 to $220,000 by 2029. Average rent prices are also expected to increase, potentially reaching $1,100 to $1,200 per month by 2029, assuming current economic conditions and local market factors remain relatively stable.
In summary, the Douglas High School neighborhood has demonstrated resilience and growth in its housing market. The area has maintained a stable balance between homeowners and renters while experiencing significant appreciation in property values. The recent sharp increase in interest rates may introduce new dynamics to the local housing market, potentially affecting affordability and homeownership rates in the coming years. Despite these challenges, the neighborhood's desirability and consistent price growth suggest a robust and attractive housing market for both homeowners and investors.
