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Highbridge, Bronx: Declining Home Values and Low Ownership Rates in a Historic 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
Highbridge, a neighborhood in the Bronx, New York, is known for its historic High Bridge, the oldest bridge in New York City, connecting Manhattan to the Bronx. This densely populated area has experienced fluctuating homeownership rates, with a predominantly renter-occupied housing market. Average home prices have shown a declining trend in recent years, while average rent prices have steadily increased.
The homeownership rate in Highbridge has remained consistently low, hovering between 3% and 4% from 2013 to 2022. This low rate of homeownership contrasts with the trend in average home prices. In 2016, the average home price was $462,050, which increased to $493,640 in 2017. However, a sharp decline followed, with prices dropping to $254,864 by 2022, representing a 48.3% decrease over six years.
Federal interest rates have played a role in homeownership trends, although the impact appears limited in Highbridge due to its consistently low homeownership rate. From 2016 to 2019, when interest rates were rising (from 0.4% to 2.16%), homeownership in Highbridge remained stable at 3-4%. The historically low interest rates in 2020 and 2021 (0.38% and 0.08% respectively) did not significantly boost homeownership, which stayed at 3% during these years.
The renter population in Highbridge has remained dominant, comprising 96-97% of occupied housing units from 2013 to 2022. This high percentage of renters correlates with a steady increase in average rent prices. In 2013, the average rent was $948, which rose to $1,140 by 2022, marking a 20.3% increase over nine years. This upward trend in rent prices occurred despite fluctuations in the neighborhood's population, which ranged from 37,964 in 2013 to 39,426 in 2022.
Looking at the most recent data, average home prices in Highbridge continued to decline in 2023 and 2024, reaching $228,170 and $219,913 respectively. This represents a further 13.7% decrease from 2022 to 2024. Concurrently, federal interest rates increased significantly to 5.02% in 2023 and 5.33% in 2024, potentially contributing to the continued decline in home prices.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in Highbridge may continue to decrease, albeit at a slower rate, potentially stabilizing around $200,000 by 2029. Average rent prices, on the other hand, are expected to maintain their upward trajectory, potentially reaching $1,300-$1,400 per month by 2029, assuming current economic conditions and local market factors remain relatively stable.
In summary, Highbridge exhibits a strong rental market with consistently high renter occupancy and steadily increasing average rent prices. The homeownership rate remains low, while average home prices have experienced a significant decline since 2017. The neighborhood's housing market appears to be more influenced by local factors than by national interest rate trends, as evidenced by the minimal impact of low interest rates on homeownership rates.
