East Farms, a neighborhood in Waterbury, Connecticut, has experienced significant changes in its real estate landscape over the past decade. The area has seen a substantial increase in homeownership rates, rising from 50% in 2017 to 70% in 2022. This trend coincided with a remarkable growth in average home prices, which increased from $107,251 in 2017 to $199,736 in 2022, representing an 86% appreciation over five years. The positive correlation between homeownership rates and average home prices suggests that rising property values have not deterred residents from purchasing homes in East Farms.

Federal interest rates have played a crucial role in shaping homeownership trends in the neighborhood. From 2017 to 2020, relatively low interest rates, ranging from 1% to 2.16%, likely contributed to the increasing homeownership rates. In 2021, as interest rates dropped to 0.08%, homeownership in East Farms peaked at 76%, the highest level observed. This aligns with the established trend that lower interest rates tend to encourage homeownership by making mortgage financing more affordable.

The renter population in East Farms has decreased as homeownership has risen. The percentage of renters dropped from 50% in 2017 to 30% in 2022. Despite this decline, average rent prices have shown a general upward trend, increasing from $1,150 in 2017 to $1,208 in 2022. This suggests that while fewer residents are renting, those who do are paying higher prices, possibly due to improved rental property quality or increased demand for the remaining rental units.