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Kenilworth, Baton Rouge: Rising Home Values and High Ownership Rates in a Resilient Market
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
Kenilworth, a neighborhood in Baton Rouge, Louisiana, has experienced significant shifts in homeownership rates and property values over the past decade. This area has seen a notable increase in owner-occupied housing, coupled with rising average home prices and fluctuating average rent costs. The trend of homeownership in Kenilworth has shown a remarkable upward trajectory. In 2013, the percentage of owner-occupied homes stood at 91%. After a brief dip to 83% in 2017, the rate has since rebounded strongly, reaching an impressive 95% in 2022. This increase in homeownership coincides with a steady rise in average home prices. In 2013, the average home price was $218,967, which has grown consistently year-over-year, reaching $321,961 in 2022. This represents a substantial 47% increase over the decade.
The relationship between federal interest rates and homeownership rates in Kenilworth presents an interesting dynamic. Despite the general trend of lower interest rates encouraging homeownership, Kenilworth's ownership rates have increased even as interest rates rose from historic lows. For instance, when federal interest rates were at 0.11% in 2013, homeownership was at 91%. By 2022, with interest rates at 1.68%, homeownership had increased to 95%. This suggests that other factors, such as local economic conditions or neighborhood desirability, may have played a more significant role in driving homeownership in Kenilworth than interest rates alone.
The rental market in Kenilworth has experienced inverse trends to homeownership. The percentage of renters decreased from 17% in 2017 to just 5% in 2022. Despite this decline in the renter population, average rent prices have shown volatility. In 2013, the average rent was $1,332, which remained relatively stable until 2017 at $1,334. However, there was a significant jump to $1,748 in 2018, followed by a decline to $1,514 in 2020. By 2022, the average rent had risen again to $1,640. This fluctuation in rent prices, despite the decreasing renter population, could indicate a shift towards higher-end rental properties in the area.
Looking at the most recent data, the average home price in Kenilworth continued its upward trend, reaching $334,568 in 2023 and $345,482 in 2024. This represents a further 7.3% increase from 2022 to 2024. Concurrently, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates could potentially impact future homeownership trends and property values in the neighborhood.
Applying predictive models to forecast the next five years, we anticipate that average home prices in Kenilworth will continue to rise, albeit potentially at a slower rate due to higher interest rates. Projections suggest average home prices could reach approximately $380,000 by 2029. Average rent prices are expected to stabilize around $1,800 per month, reflecting the limited rental market in the area.
In summary, Kenilworth has transformed into a predominantly owner-occupied neighborhood with steadily increasing property values. The area has demonstrated resilience in homeownership rates despite rising interest rates, suggesting strong local demand for housing. The rental market, while diminished, has seen volatile pricing, potentially indicating a shift towards premium rental options. These trends paint a picture of a neighborhood that has become increasingly desirable for homeowners, with a shrinking but potentially upscale rental market.
