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Average Home Values and Ownership in Buffalo's 14202 Zip Code: Urban Housing Dynamics
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
Zip code 14202, located in Buffalo, New York, has experienced significant changes in its housing market over the past decade. This urban area has seen fluctuations in homeownership rates, coupled with a general upward trend in both average home prices and average rent prices. The interplay between these factors has shaped the local real estate landscape and impacted residents' housing choices.
The homeownership rate in zip code 14202 has shown modest fluctuations over the years. In 2013, the homeownership rate stood at 19%, gradually increasing to 24% by 2016 and remaining stable until 2019. There was a slight dip to 22% in 2020 and 2021, before rising again to 23% in 2022. Concurrently, average home prices have shown a consistent upward trend. In 2013, the average home price was $297,001, which steadily increased to $531,581 by 2022, representing a substantial 79% increase over this period. This trend suggests that while home values have appreciably risen, it hasn't necessarily translated into higher homeownership rates, possibly due to affordability concerns for potential buyers.
Federal interest rates have played a significant role in shaping homeownership trends. From 2013 to 2016, when interest rates were exceptionally low (ranging from 0.11% to 0.40%), the homeownership rate in zip code 14202 increased from 19% to 24%. This aligns with the general trend of lower interest rates encouraging homeownership due to more affordable financing options. However, despite interest rates remaining relatively low through 2021, homeownership rates plateaued and even slightly decreased, suggesting other factors were influencing housing decisions in this area.
Renter percentages in zip code 14202 have remained high throughout the observed period, fluctuating between 76% and 81%. The average rent prices have shown a general upward trend, albeit with some fluctuations. In 2013, the average rent was $558, which increased to $881 by 2022, representing a 58% increase. This rise in rent prices coincided with population changes, from 3,448 residents in 2013 to 3,630 in 2022. The high renter percentage, coupled with rising rent prices, suggests a strong rental market in this urban area, possibly driven by factors such as job opportunities, lifestyle preferences, or the challenges of entering the homeownership market.
Looking at the most recent data, the average home price in zip code 14202 reached $544,944 in 2023 and further increased to $555,159 in 2024. This represents a 2.5% year-over-year increase from 2023 to 2024. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, which may impact future homeownership trends and housing affordability in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 14202 will continue to rise, albeit at a potentially slower rate due to higher interest rates. We project average home prices could reach approximately $600,000 by 2029. For average rent prices, the upward trend is likely to persist, potentially reaching around $1,000 per month by 2029, driven by continued demand for rental properties in this urban area.
In summary, zip code 14202 has experienced a significant increase in both average home prices and average rent prices over the past decade. While homeownership rates have shown some fluctuations, they have remained relatively stable in recent years. The area maintains a high percentage of renters, reflecting its urban character and the challenges of homeownership in a rising price environment. The interplay between federal interest rates, housing prices, and rent costs will continue to shape the housing market dynamics in this Buffalo neighborhood.
