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Rising Home Values and Declining Ownership: Edgerton's Shifting Housing Landscape
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
The Edgerton neighborhood in Rochester, New York, has undergone significant changes in its housing market and demographic composition over the past decade. This urban area has experienced fluctuations in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market conditions.
Homeownership rates in Edgerton have shown a general decline since 2013. In 2013, the homeownership rate was 18%, but by 2022, it had decreased to 14%. This downward trend coincides with a notable increase in average home prices. In 2013, the average home price in Edgerton was $34,675. By 2022, it had risen dramatically to $80,507, representing a 132% increase over this period. This inverse relationship between homeownership rates and average home prices suggests that rising property values may have made homeownership less accessible for many residents.
The federal interest rate trends have played a significant role in shaping homeownership patterns in Edgerton. From 2013 to 2016, when interest rates were at historic lows (ranging from 0.11% to 0.40%), the neighborhood saw relatively stable homeownership rates, hovering around 15%. However, as interest rates began to rise more sharply from 2017 onwards, reaching 1.68% in 2022, homeownership rates declined to their lowest point of 12% in 2020 before slightly rebounding to 14% in 2022. This trend aligns with the general principle that lower interest rates tend to encourage homeownership due to more affordable financing options.
Conversely, the percentage of renters in Edgerton has increased over time, rising from 80% in 2013 to 86% in 2022. This growth in the renter population has been accompanied by fluctuations in average rent prices. In 2013, the average rent was $789, which increased to $827 by 2017. However, there was a subsequent decline, with average rent dropping to $735 in 2022. These variations in rent prices, coupled with the increasing renter population, suggest a complex interplay between housing supply, demand, and affordability in the neighborhood.
Looking at the most recent data, average home prices in Edgerton reached $78,881 in 2023 and further increased to $84,993 in 2024. This represents a continued upward trend in property values. Simultaneously, 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 rates and housing market dynamics in the neighborhood.
Applying predictive models to forecast 5-year trends, it's anticipated that average home prices in Edgerton will continue to rise, potentially reaching around $100,000 by 2029. This projection is based on the consistent upward trend observed over the past decade. Average rent prices, which have shown more volatility, are expected to stabilize and potentially increase moderately, possibly reaching around $850 per month by 2029. These projections assume a continuation of current economic conditions and local market factors.
In summary, Edgerton has experienced a shift towards a predominantly renter-occupied neighborhood, with homeownership rates declining as property values have increased substantially. The interplay between federal interest rates, housing prices, and rental market dynamics has shaped the neighborhood's housing landscape. As Edgerton moves forward, balancing affordability with property value appreciation will likely be a key challenge for maintaining a diverse and vibrant community.
