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Rising Home Values in Southwest Syracuse: A Predominantly Renter-Occupied Neighborhood
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
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Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Southwest, a vibrant neighborhood in Syracuse, New York, has experienced significant demographic and housing market shifts over the past decade. This area is characterized by a predominantly renter-occupied housing market, with homeownership rates consistently below 20%. The neighborhood has seen notable fluctuations in average home prices and rent costs, reflecting broader economic trends and local market dynamics.
The relationship between homeownership rates and average home prices in Southwest presents an interesting trend. In 2013, the homeownership rate was 16% with an average home price of $35,452. As average home prices increased to $50,646 by 2019, the homeownership rate remained stable at 16%. However, a slight uptick to 17% homeownership was observed in 2022, coinciding with a substantial rise in average home prices to $85,753. This suggests that despite rising home values, a small portion of residents managed to transition into homeownership.
Federal interest rates have played a role in shaping homeownership trends in Southwest. The period from 2013 to 2016 saw historically low interest rates, hovering around 0.1% to 0.4%. During this time, homeownership rates in Southwest remained relatively stable at 14-16%. As interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, the neighborhood actually saw a slight increase in homeownership to 17%. This counters the typical trend where higher interest rates often discourage homeownership, indicating other local factors may be at play.
Renter percentages and average rent prices in Southwest have shown some correlation. In 2013, with 84% of units being renter-occupied, the average rent was $814. As the renter percentage increased slightly to 86% in 2015, average rent decreased to $767. However, by 2019, despite a return to 84% renter occupancy, average rent had risen to $943. Interestingly, 2020 and 2021 saw a significant drop in average rent to $612 and $642 respectively, while renter occupancy remained high at 83-84%. This could be attributed to economic impacts of the COVID-19 pandemic.
Looking at more recent data, 2023 saw average home prices in Southwest reach $92,629, with federal interest rates at 5.02%. In 2024, average home prices have continued to climb, reaching $105,036, while interest rates have slightly increased to 5.33%. This sustained growth in home prices, despite high interest rates, suggests strong demand in the local housing market.
Applying predictive models to forecast 5-year trends, we anticipate continued growth in average home prices for Southwest. Based on the historical data and current market conditions, average home prices could potentially reach around $130,000 to $140,000 by 2029. For rent prices, after the recent fluctuations, we expect a gradual increase, potentially reaching an average of $750 to $800 per month in the next five years, assuming economic stability and continued demand for rental properties in the area.
In summary, Southwest has demonstrated resilience in its housing market, with steadily increasing home values despite relatively low homeownership rates. The neighborhood's high proportion of renters has seen some volatility in average rent prices, particularly in recent years. The continued rise in home prices, even in the face of higher interest rates, suggests a robust local market with potential for further growth in both the ownership and rental sectors.
