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Rising Home Values and Ownership Trends in Carroll Gardens: A Decade of Change
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Carroll Gardens, a charming neighborhood in Brooklyn, New York, has experienced significant changes in homeownership rates and property values over the past decade. From 2013 to 2022, the percentage of owner-occupied homes increased from 32% to 37%, while average home prices rose from $1,265,482 to $1,747,278. During the same period, average rent prices also increased from $2,000 to $2,408.
The relationship between homeownership rates and average home prices in Carroll Gardens reveals an interesting trend. As average home prices increased by 38% from 2013 to 2022, the percentage of owner-occupied homes also rose by 5 percentage points. This suggests that despite rising property values, more residents were able to become homeowners. The most significant jump in homeownership occurred between 2016 and 2019, increasing from 35% to 42%, coinciding with a period of relatively stable home prices.
Federal interest rates have played a role in homeownership trends in Carroll Gardens. The low interest rate environment from 2013 to 2016, with rates ranging from 0.09% to 0.4%, likely contributed to the increase in homeownership from 32% to 35% during this period. As interest rates began to rise more significantly from 2017 to 2019 (1% to 2.16%), homeownership continued to increase, reaching 42% in 2019. This suggests that other factors, such as local economic conditions or housing policies, may have also influenced homeownership rates in the neighborhood.
Renter percentages and average rent prices in Carroll Gardens have shown a generally inverse relationship. As the percentage of renters decreased from 68% in 2013 to 63% in 2022, average rent prices increased from $2,000 to $2,408. The most substantial increase in average rent occurred between 2014 and 2015, jumping from $2,035 to $2,269. Interestingly, this coincided with a slight increase in the renter population from 69% to 68%, suggesting that demand for rentals remained strong despite rising prices. The population of Carroll Gardens grew from 15,427 in 2013 to 17,312 in 2022, which may have contributed to the upward pressure on rent prices despite the decreasing percentage of renters.
In 2023 and 2024, Carroll Gardens experienced a slight decline in average home prices. The average home price in 2023 was $1,704,746, a 2.4% decrease from 2022. In 2024, the average home price further decreased to $1,659,889, representing a 2.6% decline from 2023. This cooling in the housing market coincides with significantly higher federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024.
Looking ahead, predictive models suggest that average home prices in Carroll Gardens may continue to experience moderate fluctuations over the next five years. The recent cooling trend could persist in the short term, potentially followed by a gradual recovery as the market adjusts to higher interest rates. Average rent prices are projected to maintain a steady upward trajectory, albeit at a more modest pace than seen in previous years, reflecting ongoing demand for rental properties in this desirable Brooklyn neighborhood.
In summary, Carroll Gardens has demonstrated resilience in its housing market, with increasing homeownership rates despite rising property values. The interplay between federal interest rates, local economic factors, and population growth has shaped the neighborhood's housing landscape. While recent data indicates a cooling in home prices, the long-term outlook for both the ownership and rental markets in Carroll Gardens remains generally positive, reflecting the area's enduring appeal to residents and investors alike.
