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Rising Home Values and Declining Ownership in Bragg Hill: Urban Fredericksburg's Housing Shift
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Bragg Hill, an urban neighborhood in Fredericksburg, Virginia, has experienced significant changes in its housing market over the past decade. This area has seen a notable shift in homeownership rates and housing costs, with a general trend towards a renter-dominated market and rising property values. The neighborhood's housing dynamics reflect broader economic trends and local market conditions, providing insights into urban housing patterns.
The homeownership rate in Bragg Hill has shown considerable fluctuation, with an overall downward trend. In 2013, the rate stood at 16%, remaining stable through 2014. However, it saw a significant drop to 8% in 2015, before rising slightly to 12% in 2016. The rate continued to decline, reaching a low of 1% in 2019. Interestingly, there was a notable increase to 19% in 2020, followed by a slight decrease to 16% in 2022. Concurrent with these changes, average home prices in the neighborhood have shown a steady increase. The average home price rose from $69,417 in 2013 to $187,583 by 2022, representing a substantial 170% increase over this period.
The relationship between federal interest rates and homeownership rates in Bragg Hill demonstrates some correlation. For instance, the low interest rates of 0.11% in 2013 coincided with a relatively higher homeownership rate of 16%. As interest rates remained low through 2016 (0.4%), homeownership rates fluctuated but remained above 10%. However, as interest rates increased to 1.83% in 2018, homeownership rates dropped to 9%. The sharp increase in homeownership to 19% in 2020 coincided with a significant drop in interest rates to 0.38%, illustrating how lower interest rates can stimulate home buying.
Renter percentages in Bragg Hill have generally been high, showing an inverse relationship to homeownership rates. The renter-occupied percentage increased from 84% in 2013 to a peak of 99% in 2019, before decreasing to 83% in 2022. Average rent prices have shown a consistent upward trend. In 2013, the average rent was $776, which increased to $1,579 by 2022, representing a 103% increase. This rise in rent prices occurred alongside population growth, with the population increasing from 1,652 in 2013 to 2,033 in 2022, potentially contributing to increased demand for rental properties.
In 2023 and 2024, the housing market in Bragg Hill continued its upward trajectory. The average home price reached $211,198 in 2023 and further increased to $224,528 in 2024, representing a 6.3% year-over-year growth. This rise occurred despite the Federal interest rate climbing to 5.02% in 2023 and 5.33% in 2024, suggesting strong demand in the local housing market despite higher borrowing costs.
Looking ahead, based on the historical trends and current market conditions, it's projected that average home prices in Bragg Hill will continue to rise over the next five years, potentially reaching around $275,000 by 2029. Average rent prices are also expected to increase, possibly surpassing $2,000 per month within the same timeframe. These projections assume continued population growth and economic stability in the area.
In summary, Bragg Hill has experienced a significant shift towards a renter-dominated market over the past decade, with homeownership rates generally declining despite some fluctuations. This trend has been accompanied by substantial increases in both average home prices and average rent prices. The neighborhood's housing market has shown resilience, with prices continuing to rise even in the face of increasing interest rates, suggesting strong local demand for housing in this urban area of Fredericksburg.
