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Rising Home Values and Ownership in Ballston Spa: A Decade of Growth in the Mineral Springs Village
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Ballston Spa, a charming village in New York, has experienced notable shifts in its housing market over the past decade. This quaint community, known for its historic mineral springs and small-town atmosphere, has seen a gradual increase in homeownership alongside fluctuating average home prices and rent costs.
The ownership percentage in Ballston Spa has shown a consistent upward trend, rising from 57% in 2013 to 64% in 2022. This increase in homeownership coincides with a steady climb in average home prices. In 2013, the average home price was $226,049, which grew to $349,323 by 2022, representing a substantial 54.5% increase over nine years. This parallel growth suggests a strong correlation between rising home values and the increasing proportion of homeowners in the village.
The relationship between federal interest rates and homeownership rates in Ballston Spa aligns with well-established trends. As interest rates remained historically low between 2013 and 2021, ranging from 0.08% to 1.83%, homeownership in the village increased. This period of low interest rates likely made mortgages more affordable, encouraging renters to transition to homeownership. The sharp rise in interest rates to 5.02% in 2023 and 5.33% in 2024 may impact future homeownership trends.
Conversely, the percentage of renters in Ballston Spa decreased from 43% in 2013 to 36% in 2022. During this period, average rent prices showed volatility but an overall upward trend. The average rent increased from $1,094 in 2013 to $1,281 in 2021, before dropping slightly to $1,152 in 2022. The population growth from 7,616 in 2013 to 8,330 in 2022 may have contributed to the pressure on rental prices, despite the decreasing proportion of renters.
In 2023 and 2024, Ballston Spa continued to see growth in average home prices. The average home price reached $365,443 in 2023 and further increased to $379,828 in 2024. This represents a 4.5% year-over-year increase from 2023 to 2024. The continued rise in home prices, coupled with the higher interest rates of 5.02% in 2023 and 5.33% in 2024, may present challenges for potential homebuyers in the near future.
Looking ahead, predictive models suggest that average home prices in Ballston Spa are likely to continue their upward trajectory over the next five years, albeit potentially at a slower pace due to higher interest rates. Average rent prices may stabilize or show moderate increases as the balance between housing supply and demand adjusts to economic conditions and population changes.
In summary, Ballston Spa has witnessed a significant shift towards homeownership, accompanied by substantial increases in average home prices. The village's housing market has demonstrated resilience and growth, with homeownership rates and property values rising consistently over the past decade. As interest rates have recently increased, it will be crucial to monitor how these changes impact the local housing market dynamics in the coming years.
