As homeownership rates declined, the renter population in Fairmount increased correspondingly. The percentage of renters rose from 42% in 2013 to 50% in 2022. This shift coincided with a significant rise in average rent prices, which increased by 67% from $696 per month in 2013 to $1,160 in 2022. The population of Fairmount remained relatively stable during this period, fluctuating between 4,294 and 4,776 residents, suggesting that the increase in renters was primarily due to shifts in housing preferences or affordability rather than population growth.

In 2023 and 2024, the housing market in Fairmount continued to evolve. The average home price increased to $412,355 in 2023 and further to $425,147 in 2024, representing year-over-year growth rates of 3.6% and 3.1%, respectively. These increases occurred despite the Federal Reserve raising interest rates to 5.02% in 2023 and 5.33% in 2024, which typically would be expected to cool the housing market.

Based on observed trends, forecasts for the next five years suggest that average home prices are likely to continue increasing, albeit at a slower rate due to higher interest rates. Prices might reach around $475,000 to $500,000 by 2029. Average rent prices are also expected to rise, potentially reaching $1,400 to $1,500 per month by 2029, assuming the current trend continues. The ratio of homeowners to renters may stabilize or slightly favor renters if home prices continue to outpace income growth and interest rates remain high.

In conclusion, Fairmount has undergone a significant transformation in its housing market over the past decade. The neighborhood has experienced a decline in homeownership rates, accompanied by substantial increases in both average home prices and average rent prices. These changes have occurred against a backdrop of fluctuating interest rates and a relatively stable population, indicating a complex interplay of economic factors shaping the local housing landscape.