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Rising Home Values and Shifting Ownership in Monticello Village, Norfolk
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Monticello Village, a neighborhood in Norfolk, Virginia, has experienced significant changes in its housing market over the past decade. This analysis examines the fluctuations in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market conditions.
The homeownership rate in Monticello Village has shown a general decline from 2013 to 2022. In 2013, 38% of residents owned their homes, while by 2022, this figure had decreased slightly to 37%. Despite this overall downward trend, there were periods of increase, such as in 2015 when homeownership peaked at 48%. Average home prices, on the other hand, have demonstrated a consistent upward trajectory. In 2010, the average home price was $168,956, and by 2022, it had risen to $249,007, representing a substantial 47.4% increase over 12 years.
The relationship between federal interest rates and homeownership rates in Monticello Village shows some correlation. For instance, as interest rates remained low from 2010 to 2015 (ranging from 0.09% to 0.18%), homeownership rates increased from 38% in 2013 to 48% in 2015. However, as interest rates began to rise from 2016 onwards, reaching 1.68% in 2022, homeownership rates generally declined, dropping to 37% by 2022.
Renter percentages in Monticello Village have generally increased over the years, inversely mirroring the homeownership trend. In 2013, 61% of residents were renters, and by 2022, this figure had risen to 63%. The average rent prices have also shown an upward trend, albeit with some fluctuations. In 2013, the average rent was $976, and it increased to $1,286 by 2022, representing a 31.8% increase over nine years. Notably, there was a significant jump in average rent from $913 in 2021 to $1,286 in 2022, a 40.9% increase in just one year.
In 2023 and 2024, the housing market in Monticello Village continued its upward trajectory. The average home price reached $260,377 in 2023 and further increased to $272,446 in 2024, representing a 4.6% and 9.4% increase from 2022, respectively. This growth occurred despite the Federal Reserve's interest rates rising to 5.02% in 2023 and 5.33% in 2024, which are significantly higher than the rates seen in previous years.
Looking ahead, based on the historical data and current trends, we can forecast that average home prices in Monticello Village are likely to continue rising over the next five years, albeit potentially at a slower rate due to higher interest rates. Average rent prices are also expected to increase, driven by the growing renter population and the overall appreciation of property values in the area.
In summary, Monticello Village has experienced a gradual shift towards a renter-majority community over the past decade, with homeownership rates declining slightly. Despite this, both average home prices and average rent prices have shown significant increases, reflecting the growing desirability and value of the neighborhood. The recent surge in interest rates has not yet dampened the upward trajectory of home prices, suggesting a robust local housing market that may continue to see appreciation in both home values and rental rates in the coming years.
