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Medina, NY: A Decade of Housing Market Shifts Amidst Interest Rate Fluctuations
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Medina, located in New York, is a charming community with a rich history dating back to the early 19th century. Known for its picturesque Erie Canal waterfront, this village has experienced interesting shifts in homeownership and housing prices over the past decade. The overall trend shows a gradual increase in homeownership rates, coupled with a steady rise in average home prices and average rent costs.
The relationship between homeownership rates and average home prices in Medina reveals an intriguing pattern. From 2013 to 2019, there was a consistent increase in homeownership, rising from 63% to 72%. During this period, average home prices also saw a gradual uptick, climbing from $76,727 in 2013 to $99,162 in 2019. This positive correlation suggests that as home values appreciated, more residents were motivated to invest in property ownership.
Federal interest rates play a significant role in homeownership trends. The period from 2013 to 2016 saw historically low interest rates, hovering around 0.1% to 0.4%. This favorable financing environment likely contributed to the increase in homeownership during those years. As interest rates began to rise more notably from 2017 onwards, reaching 2.16% by 2019, we observe a slight decline in the homeownership rate from its peak of 72% in 2019 to 63% by 2022.
The rental market in Medina has shown its own distinct trends. As homeownership rates increased from 2013 to 2019, the percentage of renters naturally decreased from 37% to 28%. Interestingly, average rent prices fluctuated during this period, starting at $737 in 2013, dipping to $666 in 2014, and then gradually rising to $763 by 2019. The most significant jump in average rent occurred between 2019 and 2022, increasing from $763 to $879, coinciding with a rebound in the renter population from 28% to 37%.
Looking at the most recent data, average home prices in Medina continued their upward trajectory, reaching $150,331 in 2023 and further increasing to $159,276 in 2024. This represents a substantial 51.5% increase from 2020 prices. Concurrently, federal interest rates have risen sharply, hitting 5.02% in 2023 and 5.33% in 2024, which may impact future homeownership trends.
Applying predictive models to forecast the next five years, we anticipate that average home prices in Medina will continue to rise, albeit at a potentially slower rate due to higher interest rates. We project average home prices could reach approximately $185,000 to $200,000 by 2029. For average rent prices, the upward trend is likely to persist, potentially reaching $950 to $1,000 per month by 2029, assuming steady demand and limited new rental inventory.
In summary, Medina has experienced a notable increase in homeownership rates and property values over the past decade. The interplay between federal interest rates, homeownership percentages, and housing costs has been evident. Recent sharp increases in both home prices and interest rates may reshape the housing market dynamics in the coming years, potentially favoring a more balanced mix of owners and renters. The village's ability to maintain its appeal while managing affordability will be crucial in shaping its housing landscape in the near future.
