Loading Content...
Rising Home Values and Ownership: Andover's Decade of Housing Shifts
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Andover, located in New York, is a small community that has experienced notable shifts in its housing landscape over the past decade. The village has seen fluctuations in homeownership rates and rental prices, reflecting broader economic trends and local market dynamics.
The trend in homeownership in Andover has shown a general increase over the years. In 2013, the homeownership rate was 76%, and by 2022, it had risen to 81%. This upward trend in homeownership coincided with changes in average home prices, though specific price data for earlier years is not available. The increase in homeownership suggests a growing preference for property ownership among residents, possibly driven by factors such as community stability and long-term investment considerations.
Federal interest rates have played a significant role in shaping homeownership trends. From 2013 to 2016, interest rates remained relatively low, hovering between 0.09% and 0.4%. This period of low rates likely contributed to the increase in homeownership from 76% in 2013 to 78% in 2016. As interest rates began to rise more significantly from 2017 onwards, reaching 1.83% in 2018, the homeownership rate experienced a slight dip to 75% in 2018. However, the overall trend remained positive, with homeownership reaching 81% by 2022, despite higher interest rates of 1.68% that year.
Renter percentages in Andover have shown an inverse relationship to homeownership rates, naturally decreasing as homeownership increased. The percentage of renters declined from 24% in 2013 to 19% in 2022. Despite this decrease in the renter population, average rent prices have generally trended upward. In 2013, the average rent was $642, rising to $773 by 2022, representing a 20% increase over nine years. This upward trend in rent prices occurred even as the village's population fluctuated, decreasing from 2,259 in 2010 to 2,251 in 2022.
In 2023 and 2024, Andover has experienced significant changes in its housing market. The average home price in 2024 is $111,898, marking a notable figure in the village's real estate landscape. Concurrently, federal interest rates have risen sharply, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homeownership trends and housing affordability in the village.
Looking ahead, predictive models suggest that average home prices in Andover may continue to rise moderately over the next five years, potentially reaching around $120,000 by 2029. Rent prices are also expected to follow an upward trajectory, possibly increasing to approximately $850 per month in the same timeframe. These projections assume a continuation of current economic conditions and local market trends.
In summary, Andover has demonstrated a clear trend towards increased homeownership over the past decade, with a corresponding decrease in the renter population. Despite this shift, both average home prices and rent costs have shown upward trends. The recent sharp increase in interest rates, coupled with the current average home price, suggests that the housing market in Andover may be entering a new phase, potentially affecting future homeownership rates and housing affordability.
