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Niagara Falls: Home Values Surge Despite Stable Ownership Rates
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Niagara Falls, New York, a city renowned for its iconic waterfalls and tourism, has experienced interesting shifts in its housing market over the past decade. Located in western New York, this city of approximately 48,500 residents has seen fluctuations in homeownership rates and significant changes in average home and rent prices.
The homeownership rate in Niagara Falls has remained relatively stable over the years, hovering around 56-57%. However, there have been some notable shifts. In 2013, the homeownership rate was 56%, and it increased slightly to 59% by 2021, before returning to 56% in 2022. Concurrently, average home prices have shown a substantial upward trend. In 2013, the average home price was $64,466, and by 2022, it had more than doubled to $140,569. This significant increase in home values did not appear to have a major impact on homeownership rates, suggesting other factors may be influencing housing decisions in the city.
Federal interest rates have played a role in shaping homeownership trends in Niagara Falls. The period from 2013 to 2016 saw historically low interest rates, ranging from 0.09% to 0.4%. During this time, homeownership rates remained stable at around 56-57%. As interest rates began to rise from 2017 (1%) to 2019 (2.16%), there was a slight increase in homeownership, reaching 57% in 2018 and 2019. This suggests that residents may have been motivated to purchase homes before rates increased further. The dramatic drop in interest rates in 2020 (0.38%) and 2021 (0.08%) coincided with a peak in homeownership at 59% in 2021, indicating that the extremely low rates may have encouraged more residents to buy homes.
Renter percentages in Niagara Falls have fluctuated inversely to homeownership rates, ranging from 41% to 44% between 2013 and 2022. Average rent prices have shown a general upward trend, albeit with some fluctuations. In 2013, the average rent was $690, increasing to $754 by 2021, before slightly decreasing to $714 in 2022. The city's declining population, from 49,918 in 2013 to 48,502 in 2022, may have contributed to the relatively modest increases in rent prices compared to the more dramatic rise in home values.
In 2023 and 2024, the housing market in Niagara Falls continued its upward trajectory. The average home price reached $147,391 in 2023 and further increased to $153,982 in 2024. This represents a 9.5% increase from 2022 to 2024. Interestingly, this growth occurred despite a significant rise in federal interest rates, which stood at 5.02% in 2023 and 5.33% in 2024. These higher interest rates suggest that other factors, such as local economic conditions or housing supply constraints, may be driving the continued appreciation in home values.
Looking ahead, based on the trends observed, we can project that average home prices in Niagara Falls will likely continue to rise over the next five years, albeit potentially at a slower rate due to higher interest rates. A conservative estimate would put average home prices around $175,000 to $185,000 by 2029. Rent prices may also continue to increase, but at a more moderate pace, potentially reaching an average of $800 to $850 per month by 2029. However, these projections could be influenced by various factors, including changes in the local economy, population trends, and broader national economic conditions.
In summary, Niagara Falls has experienced significant growth in average home prices over the past decade, more than doubling from 2013 to 2022. Despite this, homeownership rates have remained relatively stable, with only minor fluctuations. Rent prices have shown a more modest upward trend, while the city's population has slightly declined. The resilience of the housing market, even in the face of rising interest rates, suggests a complex interplay of local and national factors shaping Niagara Falls' real estate landscape.
