Loading Content...
Holiday Hills: Rising Home Values and Shifting Ownership in a Kentucky 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
Holiday Hills, a neighborhood in Lexington-Fayette, Kentucky, has experienced significant changes in its housing market over the past decade. The area has seen a general trend of decreasing homeownership and increasing rental occupancy, accompanied by fluctuations in both home values and rental costs. This analysis examines the key trends and factors influencing the housing market in Holiday Hills from 2013 to 2024.
The homeownership rate in Holiday Hills has steadily declined from 42% in 2013 to 32% in 2022. This decline coincides with a substantial increase in average home prices, which rose from $108,169 in 2013 to $184,862 in 2022, representing a 71% increase over this period. The most dramatic rise occurred between 2020 and 2022, with average home prices jumping from $143,997 to $184,862, a 28.4% increase in just two years.
Federal interest rates have played a significant role in shaping homeownership trends. In 2013, when homeownership was at 42%, interest rates were at a low 0.11%. Despite continued low rates through 2020 (0.38%), homeownership continued to decline, reaching 30% that year. This suggests that other factors, such as rising home prices, may have outweighed the potential benefits of low interest rates for potential buyers in Holiday Hills.
Renter occupancy in Holiday Hills has increased from 56% in 2013 to 68% in 2022. This trend has been accompanied by fluctuations in average rent prices. In 2013, the average rent was $773, which decreased to $723 in 2014 before gradually rising to $769 in 2022. The highest average rent during this period was $824 in 2021. The increase in renter occupancy, despite relatively stable rent prices, may be attributed to the growing population, which rose from 7,893 in 2013 to 7,751 in 2022, with some fluctuations in between.
In 2023, average home prices in Holiday Hills reached $203,188, continuing the upward trend observed in previous years. This represents a 9.9% increase from 2022. As of 2024, average home prices have further increased to $213,833, marking a 5.2% rise from 2023. Concurrently, federal interest rates have also risen significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homeownership rates and home price growth in the neighborhood.
Looking ahead, based on the observed trends, it's projected that average home prices in Holiday Hills will continue to rise over the next five years, albeit potentially at a slower rate due to higher interest rates. Average home prices could reach approximately $250,000 by 2029. Average rent prices are also expected to increase, potentially reaching around $900 per month by 2029, driven by the continued demand for rental properties in the area.
In summary, Holiday Hills has experienced a significant shift towards a renter-dominated market over the past decade, with homeownership rates declining and average home prices rising substantially. The neighborhood has seen a complex interplay between interest rates, home prices, and rental demand, resulting in a dynamic and evolving housing market. As the area continues to grow and change, these trends are likely to shape the future of Holiday Hills' residential landscape.
