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Hornell's Housing Market: Rising Home Values and Shifting Ownership in the Birthplace of the Pullman Sleeping Car
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
Hornell, a small city in New York State with a rich railroad history, has experienced significant changes in its housing market over the past decade. Known for its former Hornell Traction Company, the city has witnessed fluctuations in homeownership rates and substantial increases in housing prices, reflecting broader economic trends.
The homeownership rate in Hornell has shown a slight decline from 2013 to 2022. In 2013, 56% of residents owned their homes, while by 2022, this figure had decreased to 53%. This trend coincides with a significant increase in average home prices. In 2013, the average home price in Hornell was $58,974, but by 2022, it had risen to $99,944, representing a substantial 69.5% increase over nine years.
The relationship between federal interest rates and homeownership rates in Hornell shows some correlation. For instance, when interest rates were at historic lows between 2013 and 2016 (ranging from 0.11% to 0.4%), homeownership rates remained relatively stable at around 55-56%. However, as interest rates began to rise more significantly from 2017 onwards, reaching 1.68% by 2022, homeownership rates showed a gradual decline to 53%.
Renter percentages in Hornell have shown a corresponding increase as homeownership rates declined. In 2013, 44% of residents were renters, and by 2022, this had increased to 47%. Average rent prices have also seen an upward trend, though with some fluctuations. In 2013, the average rent was $623, and it rose to $650 by 2022, a 4.3% increase. However, rent prices peaked at $706 in 2021 before declining slightly in 2022.
Looking at the most recent data, average home prices in Hornell continued to rise in 2023 and 2024, reaching $100,982 and $102,241 respectively. This represents a further increase of 2.3% from 2022 to 2024. Federal interest rates also saw a significant jump, rising to 5.02% in 2023 and 5.33% in 2024, which could potentially impact future homeownership rates and housing market dynamics.
Applying predictive models to these trends, we can forecast that average home prices in Hornell may continue to rise over the next five years, potentially reaching around $115,000 by 2029. Rent prices, which have shown more volatility, may stabilize and gradually increase to approximately $700 per month in the same timeframe.
In summary, Hornell has experienced a gradual shift towards renting, with homeownership rates declining slightly as home prices have increased substantially. The city has seen significant appreciation in property values, particularly since 2017. Despite rising interest rates, home prices have continued to climb, suggesting strong demand in the local housing market. The rental market has also seen growth, both in terms of the percentage of renters and average rent prices, though with more fluctuation than the homeownership market.
