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South Abbott: Rising Home Values Amidst Stable Ownership in Buffalo's Resilient Neighborhood
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
South Abbott, a densely populated neighborhood in Buffalo, New York, has demonstrated a resilient housing market characterized by high homeownership rates and steadily increasing property values. Over the past decade, the area has experienced significant growth in home prices while maintaining a strong owner-occupied housing market, reflecting broader economic trends and local market dynamics.
The homeownership rate in South Abbott has remained relatively stable between 2013 and 2022, fluctuating between 76% and 81%. During this period, average home prices in the neighborhood saw a substantial increase, rising from $105,748 in 2013 to $223,459 in 2022, representing a remarkable 111.3% increase over nine years. This upward trend in home values coincided with minor fluctuations in homeownership rates, suggesting that rising property values did not significantly deter homeownership in the area.
Federal interest rates have played a role in shaping homeownership trends in South Abbott. From 2013 to 2016, when interest rates were exceptionally low (ranging from 0.09% to 0.40%), homeownership rates remained high, averaging around 78.5%. As interest rates began to rise more significantly from 2017 onwards, there was a slight dip in homeownership to 76% in 2016 and 2017. However, the community showed resilience, with ownership rates rebounding to 79% by 2022, despite the interest rate climbing to 1.68% that year.
Renter occupancy in South Abbott has remained relatively low, ranging from 19% to 24% between 2013 and 2022. Average rent prices have shown an overall upward trend during this period, albeit with some fluctuations. In 2013, the average rent was $744, which decreased to $683 in 2014 before gradually increasing to $802 by 2022, representing a 7.8% increase over the decade. The population of South Abbott has fluctuated during this time, peaking at 5,442 residents in 2015 and settling at 5,144 in 2022, which may have influenced rental market dynamics.
In 2023 and 2024, South Abbott continued to experience growth in average home prices. The average home price reached $232,816 in 2023 and further increased to $244,809 in 2024, marking a 5.2% year-over-year growth. This occurred despite the federal interest rate rising significantly to 5.02% in 2023 and 5.33% in 2024, suggesting strong underlying demand for housing in the neighborhood.
Looking ahead, based on historical trends and current market conditions, it's projected that average home prices in South Abbott will continue to appreciate over the next five years, potentially reaching around $300,000 by 2029. Average rent prices are also expected to increase, possibly surpassing $900 per month within the same timeframe, assuming steady population growth and continued demand for rental properties in the area.
In summary, South Abbott has demonstrated a robust and growing housing market characterized by high homeownership rates and steadily increasing property values. The neighborhood has shown resilience to rising interest rates, maintaining strong homeownership levels despite significant increases in home prices. The rental market, while smaller, has also seen gradual growth in prices. These trends suggest a desirable and stable community with potential for continued appreciation in both the ownership and rental sectors of the housing market.
