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Forest Park, Georgia: Rising Home Values and Declining Ownership in a Suburban Community
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
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Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Forest Park, a city located in Georgia, has experienced significant changes in its housing market over the past decade. This vibrant community, situated just south of Atlanta, has seen notable shifts in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local developments.
The homeownership rate in Forest Park has shown a steady decline from 2013 to 2022. In 2013, 47% of residents owned their homes, but by 2022, this figure had dropped to 36%. This downward trend in homeownership coincides with a remarkable increase in average home prices. In 2013, the average home price in Forest Park was $33,367. By 2022, this figure had skyrocketed to $173,188, representing a staggering 419% increase over nine years.
The relationship between federal interest rates and homeownership rates in Forest Park appears to follow general economic principles. From 2013 to 2016, when interest rates were historically low (ranging from 0.11% to 0.40%), homeownership rates remained relatively stable, hovering around 43-44%. However, as interest rates began to rise more significantly from 2017 onwards, homeownership rates declined more rapidly. By 2022, when the federal interest rate reached 1.68%, the homeownership rate had fallen to 36%.
As homeownership declined, the percentage of renters in Forest Park increased correspondingly. In 2013, 53% of residents were renters, and this figure rose to 64% by 2022. This shift towards renting coincided with a general upward trend in average rent prices. The average rent in Forest Park increased from $844 in 2013 to $914 in 2022, representing an 8.3% increase. Notably, there were some fluctuations in rent prices during this period, with a peak of $972 in 2021 before a slight decrease in 2022.
In 2023 and 2024, Forest Park's housing market continued to evolve. The average home price in 2023 was $178,490, showing a modest increase from 2022. In 2024, the average home price further rose to $185,837. Interestingly, these price increases occurred despite a significant jump in federal interest rates, which reached 5.02% in 2023 and 5.33% in 2024. This suggests that other factors, such as local demand or economic conditions, may be influencing home prices in Forest Park.
Looking ahead, predictive models suggest that Forest Park's housing market will continue to see growth in both home prices and rent prices over the next five years. Average home prices are projected to maintain their upward trajectory, potentially reaching around $220,000 by 2029. Similarly, average rent prices are expected to increase, potentially surpassing $1,000 per month within the same timeframe.
In summary, Forest Park has experienced a significant shift from homeownership to renting over the past decade, accompanied by substantial increases in average home prices. Despite rising interest rates, home prices have continued to climb, indicating strong demand in the local housing market. The trend towards renting is likely to persist, with both home prices and rent prices expected to continue their upward trajectory in the coming years.
