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Schenectady's Housing Market: Rising Home Values and Ownership Trends in the Birthplace of Television
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Schenectady, a city in New York state with a rich industrial heritage, has experienced notable fluctuations in its housing market over the past decade. The city, known for its historical connection to General Electric and as the birthplace of television, has seen shifts in homeownership rates and significant changes in both average home prices and average rent costs.
The relationship between homeownership rates and average home prices in Schenectady reveals interesting trends. In 2013, the homeownership rate stood at 51%, with average home prices at $161,812. By 2019, homeownership had decreased to 40%, while average home prices rose to $194,117. This inverse relationship continued into 2022, with homeownership rebounding to 51% as average home prices reached $257,221. This suggests that despite rising home values, other factors influenced Schenectady residents' ability or desire to own homes.
Federal interest rates have played a role in these homeownership trends. The period from 2013 to 2016 saw historically low interest rates, hovering around 0.1-0.4%. During this time, homeownership in Schenectady fluctuated between 48-51%. As interest rates began to rise more steadily from 2017 (1%) to 2019 (2.16%), homeownership rates in the city declined to 40%. However, the sharp drop in interest rates in 2020 (0.38%) and 2021 (0.08%) coincided with a rebound in homeownership to 43% and 47% respectively.
Renter percentages and average rent prices in Schenectady have also shown notable trends. In 2013, 49% of residents were renters, with average rent at $823. By 2019, the renter percentage had increased to 60%, accompanied by a rise in average rent to $939. This trend partially reversed by 2022, with renters comprising 49% of residents and average rent reaching $1,068. These fluctuations may be attributed to changes in population, which grew from 65,915 in 2013 to 68,810 in 2022, potentially increasing demand for rental properties.
In 2023 and 2024, Schenectady's housing market continued to evolve. Average home prices rose to $271,487 in 2023 and further to $284,294 in 2024. This upward trend occurred despite a significant increase in federal interest rates, which reached 5.02% in 2023 and 5.33% in 2024. These higher interest rates typically make home financing more expensive, yet Schenectady's housing market has shown resilience in terms of price appreciation.
Looking ahead, predictive models suggest a continued upward trend in both average home prices and average rent in Schenectady over the next five years. Average home prices are projected to increase by approximately 3-5% annually, potentially reaching around $330,000 by 2029. Average rent prices are expected to rise at a similar rate, potentially surpassing $1,200 per month within the same timeframe. These projections assume stable economic conditions and no major disruptions to the local housing market.
In summary, Schenectady's housing market has demonstrated resilience and adaptability. The city has experienced a complex interplay between homeownership rates, average home prices, and average rent costs. Despite fluctuations in federal interest rates and changes in the renter-owner balance, both home values and rent prices have shown an overall upward trend. The coming years are likely to see continued growth in both sectors, reflecting the city's ongoing evolution and its appeal to both homeowners and renters.
