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Watts Hospital-Hillandale: Rising Home Values and Stable Ownership in Durham's Historic 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
Watts Hospital-Hillandale, a charming neighborhood in Durham, North Carolina, has experienced significant changes in homeownership rates and property values over the past decade. This area, known for its historic homes and tree-lined streets, has maintained a high percentage of owner-occupied homes, with ownership rates consistently above 70% since 2014. Average home prices have shown a steady upward trend, while average rent prices have fluctuated but generally increased over time.
The relationship between homeownership rates and average home prices in Watts Hospital-Hillandale reveals an interesting trend. In 2013, the homeownership rate was 64%, with an average home price of $226,571. As average home prices increased to $291,985 by 2016, the homeownership rate rose to 75%. This trend continued, with the ownership rate reaching 77% in 2017 when the average home price was $315,678. However, despite further increases in average home prices, the ownership rate slightly decreased to 72% in 2020, with homes averaging $364,789. By 2022, the ownership rate rebounded to 76% as average home prices surged to $510,428.
Federal interest rates have played a significant role in homeownership trends. The period from 2013 to 2016 saw historically low interest rates, ranging from 0.11% to 0.40%, which likely contributed to the increase in homeownership from 64% to 75%. As interest rates began to rise more substantially from 2017 (1%) to 2019 (2.16%), homeownership rates remained relatively stable. The sharp drop in interest rates to 0.38% in 2020 coincided with a slight decrease in homeownership to 72%, possibly due to economic uncertainties during the pandemic.
Renter percentages and average rent prices in Watts Hospital-Hillandale have shown an inverse relationship to homeownership trends. In 2013, when 36% of residents were renters, the average rent was $1,123. As the renter percentage decreased to 25% in 2015, average rent increased significantly to $1,589. This trend continued with some fluctuations; by 2018, the renter percentage remained at 25%, but average rent reached $1,682. In 2022, with renters making up 24% of the population, the average rent was $1,528.
Looking at the most recent data, average home prices in Watts Hospital-Hillandale continued to rise, reaching $519,664 in 2023 and $539,258 in 2024. This represents a 5.8% increase from 2022 to 2024. Concurrently, federal interest rates have increased substantially, rising to 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homeownership trends and property values in the neighborhood.
Applying predictive models to forecast 5-year trends, we anticipate average home prices in Watts Hospital-Hillandale to continue their upward trajectory, potentially reaching around $650,000 by 2029. This projection is based on the consistent year-over-year increases observed since 2013. For average rent prices, the forecast suggests a more moderate increase, potentially reaching approximately $1,800 by 2029, considering the historical fluctuations and overall upward trend since 2013.
In summary, Watts Hospital-Hillandale has demonstrated strong homeownership rates and significant appreciation in property values over the past decade. The neighborhood has maintained a high percentage of owner-occupied homes despite rising home prices, suggesting a desirable and stable community. The inverse relationship between homeownership and rental trends, coupled with the impact of federal interest rates, highlights the dynamic nature of the local real estate market. As average home prices continue to rise and interest rates remain elevated, it will be crucial to monitor how these factors affect affordability and homeownership rates in the coming years.
