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Average Home Values and Ownership in Buffalo's Zip Code 14207: A Decade of Significant Change
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 14207, located in Buffalo, New York, has experienced significant changes in its housing market over the past decade. This area has seen a gradual shift in homeownership rates, alongside fluctuations in average home prices and average rent prices, reflecting the dynamic nature of the local real estate landscape.
The homeownership rate in zip code 14207 has shown a slight decline from 2013 to 2022. In 2013, the percentage of owner-occupied homes was 39%, which decreased to 36% by 2022. This trend coincides with a substantial increase in average home prices. In 2013, the average home price was $47,065, which rose dramatically to $140,057 by 2022, representing a 197% increase over nine years. This inverse relationship suggests that rising home prices may have made homeownership less attainable for some residents in the area.
Federal interest rates have played a role in shaping homeownership trends in zip code 14207. From 2013 to 2016, interest rates remained relatively low, ranging from 0.11% to 0.40%. During this period, the homeownership rate decreased slightly from 39% to 34%. As interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), the homeownership rate stabilized around 33-35%. Interestingly, when interest rates dropped sharply in 2020 and 2021 (0.38% and 0.08% respectively), there was a slight uptick in homeownership to 36% in 2020 and 2022, possibly due to more affordable financing options.
The rental market in zip code 14207 has shown its own distinct trends. The percentage of renter-occupied homes increased from 61% in 2013 to 64% in 2022, with a peak of 67% in 2017. Average rent prices have also seen an upward trend, rising from $690 in 2013 to $753 in 2022, an increase of about 9%. It's worth noting that the population in this zip code has grown from 22,422 in 2013 to 25,804 in 2022, which may have contributed to the increased demand for rental properties and the subsequent rise in average rent prices.
Looking at the most recent data, the average home price in zip code 14207 reached $143,840 in 2023 and further increased to $148,709 in 2024. This represents a continued upward trend in home values. Concurrently, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024, which may impact future homeownership rates and housing affordability in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 14207 will continue to rise, potentially reaching around $175,000 to $190,000 by 2029. Average rent prices are also expected to increase, possibly reaching $850 to $900 per month in the same timeframe. These projections assume a continuation of current economic conditions and local market trends.
In summary, zip code 14207 has experienced a gradual shift towards a higher proportion of renters, alongside substantial increases in average home prices. The interplay between federal interest rates, homeownership rates, and housing prices has been evident, with recent sharp increases in interest rates potentially influencing future market dynamics. The area's growing population and rising property values suggest a robust demand for housing, which is likely to continue shaping the local real estate landscape in the coming years.
