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Franklin Square: Resilient Housing Market Amid Rising Home Values and Interest Rates
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
Franklin Square, located in New York, is a vibrant community with a population of 31,969 as of 2022. This densely populated area, covering just 2.88 square miles, has maintained a strong preference for homeownership over the past decade. The city has experienced notable trends in both average home prices and average rent prices, reflecting the dynamic nature of its real estate market.
Homeownership rates in Franklin Square have remained relatively stable, ranging from 82% to 84% between 2013 and 2022. This high rate of ownership has persisted despite significant increases in average home prices. In 2013, the average home price was $403,913, which steadily rose to $678,488 by 2022, representing a substantial 68% increase over this period. Notably, the most significant year-over-year increase occurred between 2020 and 2021, with average home prices jumping from $591,718 to $637,947, a 7.8% rise in a single year.
The relationship between federal interest rates and homeownership rates in Franklin Square appears to follow typical patterns. From 2013 to 2022, interest rates remained relatively low, ranging from 0.08% to 2.16%. This low-interest environment likely contributed to the sustained high homeownership rates, as it made mortgage financing more accessible and affordable for potential buyers. The slight fluctuations in homeownership percentages during this period may be attributed to other economic factors or local market conditions.
Renter percentages in Franklin Square have remained relatively low, fluctuating between 16% and 18% from 2013 to 2022. Despite this small renter population, average rent prices have shown significant volatility. In 2013, the average rent was $1,648, which increased to $1,880 by 2018, representing a 14% rise. However, rent prices then experienced a slight decline, settling at $1,744 in 2022. This trend suggests that while the rental market is smaller, it remains responsive to broader economic conditions and local housing demand.
Looking at the most recent data, average home prices in Franklin Square continued to rise in 2023 and 2024. In 2023, the average home price reached $688,407, and by 2024, it further increased to $721,599. This represents a 6.3% increase from 2022 to 2024. Concurrently, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homeownership trends and affordability in the area.
Applying predictive models to forecast 5-year trends, it's anticipated that average home prices in Franklin Square will continue to rise, albeit potentially at a more moderate pace due to higher interest rates. Average home prices could potentially reach around $800,000 by 2029. Average rent prices are also expected to increase, possibly surpassing $2,000 per month within the next five years, driven by overall housing market appreciation and potential shifts in housing preferences.
In summary, Franklin Square has maintained a strong preference for homeownership despite significant increases in average home prices. The community has demonstrated resilience in its housing market, with steady growth in property values and relatively stable rental rates. The recent rise in interest rates may introduce new dynamics to the local real estate market, potentially affecting affordability and homeownership trends in the coming years. As the community continues to evolve, it will be important to monitor how these trends impact the overall housing landscape in Franklin Square.
