Loading Content...
Average Home Values and Ownership Dynamics in Manhattan's Zip Code 10017: A Decade of Fluctuations
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Zip code 10017, located in Manhattan, New York, is a vibrant urban area known for its proximity to iconic landmarks like Grand Central Terminal and the United Nations Headquarters. This densely populated district has experienced fluctuating homeownership rates and significant changes in average home and rent prices over the past decade.
The homeownership rate in zip code 10017 has shown a notable trend, increasing from 34% in 2013 to a peak of 40% in 2019, before declining to 32% in 2022. This trend correlates interestingly with average home prices, which rose from $596,051 in 2013 to a high of $883,453 in 2018, before experiencing a gradual decline to $808,678 in 2022. The initial increase in homeownership coincided with rising property values, suggesting a period of investment opportunity for residents.
Federal interest rates have played a significant role in shaping homeownership trends. From 2013 to 2016, when interest rates were consistently below 0.5%, homeownership in the area increased from 34% to 37%. This aligns with the general trend of lower interest rates encouraging homeownership due to more affordable financing options. However, as interest rates began to rise more sharply from 2017 onwards, reaching 1.68% in 2022, we observed a decline in homeownership rates from 40% in 2019 to 32% in 2022.
Renter percentages in zip code 10017 have inversely mirrored homeownership trends, decreasing from 66% in 2013 to 59% in 2018-2019, before rising again to 68% in 2022. Average rent prices have shown a general upward trend, increasing from $2,031 in 2013 to $2,515 in 2022, with some fluctuations. The highest average rent was recorded in 2021 at $2,753. These trends suggest that as homeownership became less attainable due to rising interest rates and high property values, more residents turned to renting, driving up demand and rental prices.
In 2023 and 2024, we observe a significant shift in the housing market for zip code 10017. The average home price dropped sharply to $684,063 in 2023 and further decreased to $659,420 in 2024. This represents a substantial decline from the peak prices seen in previous years. Concurrently, federal interest rates have risen dramatically, reaching 5.02% in 2023 and 5.33% in 2024. These high interest rates, combined with the declining home prices, indicate a cooling housing market and potentially changing dynamics for both buyers and sellers in the area.
Looking ahead, predictive models suggest that average home prices in zip code 10017 may continue to experience downward pressure over the next five years, potentially stabilizing around the $600,000 mark by 2029. This forecast takes into account the current market cooling and high interest rates. For average rent prices, the model predicts a more stable trajectory, with potential modest increases averaging 2-3% annually, reaching approximately $2,800 by 2029. These predictions assume a gradual normalization of interest rates and economic conditions.
In summary, zip code 10017 has experienced significant fluctuations in homeownership rates and housing prices over the past decade. The area saw a peak in homeownership and property values around 2018-2019, followed by a shift towards renting and a recent sharp decline in home prices. The interplay between federal interest rates, property values, and renting trends has been crucial in shaping the local real estate market. As we move forward, the area may see a period of adjustment with potentially more affordable home prices but sustained rental demand.
