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Gowanus Real Estate Trends: Rising Home Values and Shifting Ownership Patterns in Brooklyn's Industrial-Turned-Residential Neighborhood
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
Gowanus, a Brooklyn neighborhood known for its industrial past, has experienced significant changes in its real estate market from 2013 to 2024. This analysis focuses on the trends in homeownership rates, average home prices, and rental costs in the area.
The ownership percentage in Gowanus has shown a gradual increase from 31% in 2013 to 36% in 2022. This upward trend in homeownership coincides with a substantial rise in average home prices. In 2013, the average home price in Gowanus was $667,833, which steadily climbed to $1,135,653 by 2022, representing a remarkable 70% increase over this period. This correlation suggests that despite rising property values, more residents are choosing to invest in homeownership in the neighborhood.
Federal interest rates have played a role in shaping homeownership trends in Gowanus. The period from 2013 to 2016 saw historically low interest rates, ranging from 0.11% to 0.4%. During this time, homeownership rates remained relatively stable, hovering around 29-31%. As interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), there was a corresponding increase in homeownership rates from 31% to 34%. This trend suggests that residents may have been motivated to purchase homes before further rate increases, despite rising property values.
Renter percentages in Gowanus have shown a modest decline, from 69% in 2013 to 64% in 2022. This decrease aligns with the rise in homeownership. Average rent prices, however, have experienced substantial growth. In 2013, the average rent was $1,640, which increased to $2,180 by 2022, a 33% rise. This upward trend in rent prices, coupled with the decrease in renter percentages, indicates a shift in the neighborhood's housing dynamics, possibly driven by broader gentrification trends and increased desirability of the area.
In 2023 and 2024, Gowanus experienced a slight dip in average home prices. The average home price in 2023 was $1,115,640, decreasing to $1,104,173 in 2024. This represents a 2.8% decrease from the 2022 peak. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, potentially influencing this slight cooling in the housing market.
Looking ahead, predictive models suggest that average home prices in Gowanus may continue to experience moderate growth over the next five years, albeit at a slower pace than observed in the previous decade. Average rent prices are also expected to maintain an upward trajectory, reflecting the neighborhood's ongoing development and increasing popularity.
In summary, Gowanus has undergone significant changes in its housing market from 2013 to 2024. The neighborhood has seen a steady increase in homeownership rates, substantial growth in average home prices, and rising average rent prices. These trends reflect the area's transformation and increasing desirability. However, recent data suggests a potential stabilization in the housing market, possibly influenced by higher interest rates. As Gowanus continues to evolve, it will be crucial to monitor these trends and their impact on the neighborhood's demographics and character.
