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Rising Home Values and Strong Ownership in Cavalier Forest, Portsmouth: A Decade of Growth
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Cavalier Forest, a neighborhood in Portsmouth, Virginia, has demonstrated remarkable stability in homeownership rates while experiencing significant growth in average home values over the past decade. This area has consistently maintained a high percentage of owner-occupied homes, typically exceeding 80%, alongside a steady increase in housing prices, particularly in recent years.
The homeownership rate in Cavalier Forest has remained relatively constant, with minor fluctuations. In 2013, the ownership rate was 86%, and by 2022, it stood at 85%. Despite these slight variations, the neighborhood has consistently maintained a high proportion of owner-occupied homes. Simultaneously, average home prices have shown a general upward trend. In 2013, the average home price was $178,597, which rose to $271,877 by 2022, representing a substantial 52% increase over this period.
Federal interest rates have influenced homeownership trends in Cavalier Forest. From 2013 to 2016, when interest rates were extremely low (ranging from 0.11% to 0.40%), homeownership rates remained high, fluctuating between 82% and 87%. As interest rates began to rise more significantly from 2017 (1.00%) to 2019 (2.16%), homeownership rates actually increased, reaching a peak of 92% in 2019. This suggests that local factors may have had a stronger impact on homeownership than interest rates in this neighborhood.
Renter percentages in Cavalier Forest have generally been low, complementing the high homeownership rates. In 2013, renters occupied 13% of homes, and this percentage fluctuated over the years, reaching a low of 8% in 2019 before rising to 15% in 2022. Average rent prices have shown an overall upward trend, albeit with some fluctuations. In 2013, the average rent was $1,299, which increased to $1,321 by 2022. Notably, there was a significant spike in 2020 when the average rent reached $1,650, possibly influenced by the sudden population decrease to 1,542 residents that year.
As of 2024, the average home price in Cavalier Forest has reached $298,516, continuing the upward trend observed in previous years. This represents a 10% increase from the 2022 average of $271,877. The federal interest rate for 2024 stands at 5.33%, which is significantly higher than the rates seen in the early 2020s. This increase in interest rates could potentially impact future homeownership rates and housing affordability in the neighborhood.
Looking ahead, based on the historical data and current trends, it's projected that average home prices in Cavalier Forest will continue to rise over the next five years, potentially reaching around $350,000 by 2029. Average rent prices are also expected to increase, possibly surpassing $1,500 per month within the same timeframe. However, these projections could be influenced by various factors, including economic conditions, local development, and changes in federal interest rates.
In summary, Cavalier Forest has maintained a strong homeownership base with steadily increasing average home prices. The neighborhood has shown resilience in maintaining high ownership rates despite fluctuations in federal interest rates. Rent prices have also shown an upward trend, albeit with some volatility. The continued rise in both home prices and rents, coupled with higher interest rates, may present challenges for housing affordability in the future, potentially impacting the long-standing high homeownership rates in this Portsmouth neighborhood.
