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Rising Home Values and Shifting Ownership in Union Street, Schenectady: 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
Union Street, located in Schenectady, New York, has experienced significant changes in its housing market over the past decade. This neighborhood has maintained relatively stable homeownership rates while seeing steady increases in average home prices, particularly since 2015. The area has also witnessed rising rent prices, reflecting its growing appeal to residents and investors alike. The relationship between homeownership rates and average home prices in Union Street reveals an interesting dynamic. In 2013, the homeownership rate was 67% with an average home price of $131,989. By 2022, the homeownership rate had decreased slightly to 63%, while the average home price had increased substantially to $216,110. This trend suggests that despite rising home values, the neighborhood has maintained a relatively stable proportion of homeowners. The most significant shift occurred between 2013 and 2015, when homeownership dropped from 67% to 61%, coinciding with a slight dip in average home prices from $131,989 to $130,830.
Federal interest rates have played a role in shaping homeownership trends in Union Street. From 2013 to 2015, when interest rates remained very low (0.11% to 0.13%), homeownership rates paradoxically decreased. This suggests that other local factors may have had a stronger influence on homeownership during this period. However, as interest rates began to rise more significantly from 2016 onwards, homeownership rates stabilized and even slightly increased, possibly indicating that residents were motivated to purchase homes before rates climbed further.
Renter percentages and average rent prices in Union Street have shown a correlation over the years. In 2013, the renter-occupied percentage was 33%, with an average rent of $854. By 2022, the renter percentage had increased to 37%, while the average rent had risen to $1,163. The most substantial increase in average rent occurred between 2017 and 2018, jumping from $1,035 to $1,186, a 14.6% increase. This coincided with a population growth from 9,225 to 9,396, suggesting that increased demand may have driven up rental prices.
Looking at the most recent data, the average home price in Union Street reached $230,145 in 2023 and further increased to $244,335 in 2024. This represents a significant 13.1% increase from 2022 to 2024. Concurrently, federal interest rates rose to 5.02% in 2023 and 5.33% in 2024, reaching levels not seen since before the 2008 financial crisis. These higher interest rates may impact future homeownership trends and affordability in the neighborhood.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in Union Street will continue to rise, potentially reaching around $280,000 by 2029. This projection is based on the consistent upward trend observed since 2015. Average rent prices are also expected to increase, possibly surpassing $1,300 per month within the next five years, assuming the current growth rate continues.
In summary, Union Street has demonstrated resilience in its housing market, maintaining relatively stable homeownership rates despite rising home prices. The neighborhood has experienced steady growth in both home values and rental prices, indicating its increasing desirability. The recent sharp increase in interest rates, combined with rising home prices, may present challenges for potential homebuyers in the coming years. However, the consistent appreciation in property values suggests that Union Street remains an attractive area for both homeowners and investors.
