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Homestead Heights: Rising Home Values and Ownership Trends in Rochester's Resilient 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
Homestead Heights, a neighborhood in Rochester, New York, has experienced significant changes in its housing market over the past decade. This area has seen fluctuations in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market conditions.
The homeownership rate in Homestead Heights has demonstrated resilience, with some variations over the years. In 2013, the neighborhood had a high 75% homeownership rate. This figure decreased to 65% in 2019 but rebounded to 76% by 2022. During this same period, average home prices in the area have seen a substantial upward trajectory. In 2013, the average home price was $68,964, which steadily increased to $137,640 by 2022, representing a significant 99.6% increase over this period.
The relationship between federal interest rates and homeownership rates in Homestead Heights follows established economic patterns. As interest rates remained low between 2013 and 2016, around 0.1%, the homeownership rate remained relatively stable at approximately 72-75%. However, as interest rates began to rise from 2017 onwards, reaching 1.83% in 2018, there was a corresponding decrease in homeownership rates to 69% that year. Interestingly, despite further increases in interest rates, the neighborhood saw a resurgence in homeownership, reaching 76% by 2022, possibly indicating other local factors at play.
Renter percentages and average rent prices in Homestead Heights have shown an interesting inverse relationship. In 2013, when the renter percentage was at 25%, the average rent was $911. As the renter percentage increased to 35% in 2019, average rent also rose to $1,161. However, by 2022, as the renter percentage decreased to 24%, average rent slightly decreased to $1,086. This trend suggests that rental demand may have influenced pricing, with higher demand leading to increased rents and vice versa.
More recent data shows that in 2023, the average home price in Homestead Heights reached $142,074, continuing the upward trend. The federal interest rate in 2023 was 5.02%, significantly higher than previous years. In 2024, the average home price further increased to $149,462, while the interest rate rose slightly to 5.33%. These figures indicate a resilient housing market despite higher borrowing costs.
Looking ahead, predictive models suggest a continued upward trend in both average home and rent prices over the next five years. Based on historical data and current market conditions, average home prices could potentially reach around $180,000 by 2029, representing a 20% increase from 2024 levels. Average rent prices might similarly increase, potentially reaching $1,300-$1,400 per month in the same timeframe.
In summary, Homestead Heights has demonstrated a robust housing market characterized by increasing home values and a recent resurgence in homeownership rates. The neighborhood has shown resilience in the face of rising interest rates, with both home prices and homeownership rates increasing despite higher borrowing costs. The rental market has shown more volatility, with rent prices generally increasing but showing sensitivity to changes in the renter population. As the neighborhood continues to evolve, it appears poised for further growth in both the homeownership and rental sectors.
