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Highland: Rising Home Values and Shifting Ownership in Rochester's Historic Neighborhood
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Highland's Housing Dynamics: A Decade of Change Highland, a neighborhood in Rochester, New York, has undergone significant changes in its housing market over the past decade. From 2013 to 2022, the area experienced a notable shift in homeownership rates, average home prices, and rental trends. These changes reflect broader economic factors and local market conditions that have reshaped the neighborhood's residential landscape.
Homeownership Decline and Rental Growth The homeownership rate in Highland has seen a marked decrease from 2013 to 2022. In 2013, 28% of residents owned their homes, but by 2022, this figure had dropped to 17%. Conversely, the percentage of renters increased from 70% to 83% during the same period. This shift towards renting coincided with a substantial increase in average home prices. The average home price in Highland rose from $129,929 in 2013 to $226,535 in 2022, representing a 74% increase over nine years.
Federal Interest Rates and Homeownership The trend of declining homeownership rates in Highland appears to be influenced by federal interest rates, although the relationship is not always straightforward. When interest rates were at historic lows between 2013 and 2016 (ranging from 0.09% to 0.4%), homeownership rates remained relatively stable at around 29-30%. However, as interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, homeownership rates declined more rapidly, dropping from 30% in 2017 to 17% in 2022.
Rental Market Trends Renter percentages and average rent prices in Highland have shown interesting trends. As the renter population increased from 70% in 2013 to 83% in 2022, average rent prices also rose, albeit with some fluctuations. In 2013, the average rent was $1,109, and it increased to $1,212 by 2022, representing a 9.3% increase. Notably, there was a peak in average rent in 2018 at $1,281, coinciding with a population increase to 12,123 residents that year.
Recent Housing Market Developments The most recent data shows that the average home price in Highland continued its upward trajectory, reaching $247,044 in 2023 and further increasing to $263,993 in 2024. This represents a 16.5% increase from 2022 to 2024. Interestingly, federal interest rates also saw a significant rise, jumping from 1.68% in 2022 to 5.02% in 2023, and slightly increasing to 5.33% in 2024. These higher interest rates may further impact homeownership rates in the neighborhood.
Future Projections Applying predictive models to forecast 5-year trends, it's anticipated that average home prices in Highland will continue to rise, potentially reaching around $300,000 by 2029. Average rent prices are also expected to increase, possibly surpassing $1,400 per month within the same timeframe. These projections are based on the consistent upward trends observed in both home prices and rent over the past decade.
Conclusion Highland has experienced a significant shift towards renting, with homeownership rates declining by 11 percentage points from 2013 to 2022. This trend has occurred alongside substantial increases in average home prices and moderate increases in average rent prices. The neighborhood has also seen fluctuations in population density, which may have influenced housing demand. With rising home prices and interest rates, it's likely that the trend towards renting will continue in the near future, potentially putting upward pressure on rent prices.
