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Great Neck: Rising Home Values and Shifting Ownership Trends
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
Great Neck, located in New York, is a charming community with a rich history and diverse population. The village has experienced notable shifts in homeownership rates and housing prices over the past decade, reflecting broader economic trends and local market dynamics.
From 2013 to 2022, Great Neck saw fluctuations in homeownership rates. In 2013, the homeownership rate stood at 76%, reaching its peak of 78% in 2019 before settling at 74% in 2022. During this period, average home prices in the village showed a steady upward trend. In 2013, the average home price was $904,657, which increased significantly to $1,231,308 by 2022, representing a 36% increase over nine years.
The relationship between federal interest rates and homeownership rates in Great Neck follows a generally inverse pattern. For instance, when interest rates were at historic lows of 0.08% in 2021, homeownership rates were at 72%. As interest rates began to rise, reaching 1.68% in 2022, homeownership rates increased slightly to 74%. This suggests that while lower interest rates can encourage homeownership due to more affordable financing options, other local factors also play a significant role in Great Neck's housing market.
Renter percentages in Great Neck have shown some variability, ranging from 22% to 28% between 2013 and 2022. Interestingly, average rent prices have not always moved in tandem with renter percentages. In 2013, the average rent was $1,667, which increased dramatically to $2,787 in 2019 when the renter percentage was at its lowest (22%). By 2022, average rent had decreased to $2,078, while the renter percentage stood at 26%. This suggests that factors beyond supply and demand, such as local policies or economic conditions, may influence rent prices in the village.
In 2023 and 2024, Great Neck continued to see growth in average home prices. The average home price reached $1,263,155 in 2023 and further increased to $1,333,526 in 2024. This represents a 2.6% increase from 2022 to 2023 and a 5.6% increase from 2023 to 2024. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, potentially impacting homebuying decisions in the village.
Looking ahead, predictive models suggest that average home prices in Great Neck may continue their upward trajectory over the next five years, potentially reaching around $1,500,000 by 2029. Average rent prices, which have shown more volatility, may stabilize and gradually increase, potentially reaching approximately $2,300 by 2029. However, these projections are subject to various economic factors and local market conditions.
In summary, Great Neck has demonstrated resilience in its housing market, with steadily increasing average home prices despite fluctuations in homeownership rates. The relationship between interest rates and homeownership is complex, influenced by various local factors. Rent prices have shown volatility, not always aligning with changes in renter percentages. As the village moves forward, it will likely continue to see growth in property values, with potential stabilization in the rental market.
