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Rising Home Values and Ownership Trends in Underwood Hills: A Decade of Real Estate Transformation
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Underwood Hills, a neighborhood in Atlanta, Georgia, has experienced significant changes in its housing market over the past decade. This analysis examines trends in homeownership rates, average home prices, and average rent prices, revealing interesting patterns and potential future developments. The homeownership rate in Underwood Hills has shown notable fluctuations, with a general upward trend in recent years. In 2013, the neighborhood had a 54% homeownership rate, which declined to 40% by 2017. However, there has been a remarkable recovery since then, with the homeownership rate reaching 63% in 2022. This increase in homeownership coincides with a substantial rise in average home prices. In 2013, the average home price was $192,154, which steadily increased to $410,208 by 2022, representing a 113% increase over this period.
The relationship between federal interest rates and homeownership rates in Underwood Hills shows an interesting pattern. Despite historically low interest rates between 2013 and 2016 (ranging from 0.09% to 0.40%), homeownership rates actually decreased during this period. However, as interest rates began to rise from 2017 onwards, homeownership rates in the neighborhood also started to increase. This suggests that other local factors, such as job market conditions or neighborhood development, may have played a more significant role in driving homeownership trends in Underwood Hills than national interest rates.
Renter percentages and average rent prices in Underwood Hills have also shown notable trends. The renter-occupied percentage peaked at 60% in 2016 and 2017, corresponding with average rent prices of $1,243 and $1,284 respectively. Since then, the renter percentage has decreased to 37% in 2022, while average rent prices continued to rise, reaching $1,398 in the same year. This inverse relationship between renter percentages and rent prices could be attributed to increasing housing demand in the area, pushing both home prices and rents higher, and potentially pricing out some renters.
Looking at the most recent data, the average home price in Underwood Hills reached $411,885 in 2023 and further increased to $417,814 in 2024. This represents a modest but steady growth of 1.4% and 1.9% year-over-year, respectively. Concurrently, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024, which could potentially impact future homebuying activity in the neighborhood.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in Underwood Hills will continue to rise, albeit at a more moderate pace. By 2029, average home prices could reach approximately $470,000 to $490,000, assuming current economic conditions persist. For average rent prices, the forecast suggests a potential increase to around $1,600 to $1,700 per month by 2029, reflecting the ongoing demand for housing in the area.
In summary, Underwood Hills has experienced a significant increase in homeownership rates and average home prices over the past decade, particularly since 2017. The neighborhood has shown resilience in its housing market, with both ownership rates and property values rising despite fluctuations in the broader economic environment. The recent uptick in interest rates and the steady growth in home prices suggest a stabilizing market, but one that remains attractive to both homeowners and investors. As the neighborhood continues to evolve, it will be crucial to monitor these trends and their impact on the local community and housing affordability.
