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Rising Home Values and Shifting Ownership in West Lincoln Avenue, New Berlin
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
West Lincoln Avenue, a vibrant neighborhood in New Berlin, Wisconsin, has experienced significant changes in its real estate market and demographics over the past decade. This area has seen notable shifts in homeownership rates, average home prices, and rent prices, reflecting broader economic trends and local market conditions. From 2013 to 2022, West Lincoln Avenue witnessed a decrease in homeownership rates from 85% to 79%, while the percentage of renters increased from 12% to 21%. During this period, average home prices rose substantially from $223,062 to $382,499, representing a 71.5% increase over nine years. The relationship between federal interest rates and homeownership rates in the neighborhood followed a predictable pattern. As interest rates remained low between 2013 and 2020, ranging from 0.09% to 0.38%, homeownership rates initially remained stable at around 86-88%. However, when interest rates rose to 1.68% in 2022, homeownership rates decreased to 79%, suggesting that higher borrowing costs may have affected affordability for potential buyers.
The rental market in West Lincoln Avenue also experienced significant changes. As the percentage of renters increased from 12% in 2013 to 21% in 2022, average rent prices rose from $956 to $1,109, a 16% increase. This trend indicates a growing demand for rental properties in the neighborhood, potentially driven by those priced out of the homeownership market or preferring the flexibility of renting. In 2023 and 2024, the neighborhood saw further increases in average home prices and interest rates. The average home price reached $407,622 in 2023 and $425,400 in 2024, representing year-over-year increases of 6.5% and 4.4%, respectively. Concurrently, federal interest rates climbed to 5.02% in 2023 and 5.33% in 2024, potentially impacting homebuying affordability and contributing to the ongoing shift towards renting in the neighborhood. Predictive models suggest that average home prices in West Lincoln Avenue may continue to rise over the next five years, albeit at a potentially slower rate due to higher interest rates. Average rent prices are also expected to increase, driven by the growing demand for rental properties in the area. These trends could further reshape the neighborhood's demographic composition and housing market dynamics. West Lincoln Avenue has undergone significant changes in its housing market over the past decade. The shift from homeownership to renting, coupled with rising home prices and rents, reflects broader economic trends and changing preferences among residents. As the neighborhood continues to evolve, these trends are likely to play a crucial role in shaping its future development and community composition.
