Loading Content...
Average Home Values and Ownership in Zip Code 06405: A Decade of Growth and Stability
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 06405, located in Branford Center, Connecticut, presents an intriguing case study of housing market dynamics. This area has experienced notable shifts in homeownership rates and property values over the past decade. The ownership percentage has fluctuated between 62% and 68%, while average home prices have shown a consistent upward trend, particularly in recent years.
The relationship between homeownership rates and average home prices in 06405 reveals interesting patterns. In 2013, the ownership rate was 65% with an average home price of $250,140. By 2022, the ownership rate increased slightly to 68%, while the average home price rose significantly to $366,057, representing a 46.3% increase over nine years. This suggests that despite rising property values, the area maintained a strong homeownership base.
Federal interest rates have played a role in homeownership trends in 06405. The period from 2013 to 2016 saw historically low interest rates, hovering around 0.1% to 0.4%. During this time, homeownership rates remained relatively stable at 64-65%. As interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, homeownership actually increased to 68%, possibly indicating other local factors influencing buying decisions.
Renter percentages and average rent prices in 06405 have shown some correlation. In 2013, the renter percentage was 35% with an average rent of $1,220. By 2022, the renter percentage decreased to 32%, while the average rent increased to $1,432, a 17.4% rise. This suggests that as rents became more expensive, the proportion of renters slightly decreased, possibly due to some renters transitioning to homeownership or seeking more affordable options elsewhere.
In 2023 and 2024, the housing market in 06405 continued its upward trajectory. The average home price in 2023 reached $397,209, and in 2024 it further increased to $425,195. This represents a 16.2% increase from 2022 to 2024. Concurrently, federal interest rates rose significantly, reaching 5.02% in 2023 and 5.33% in 2024, potentially impacting affordability for prospective homebuyers.
Looking ahead, predictive models suggest that average home prices in 06405 may continue to rise over the next five years, potentially reaching around $500,000 by 2029 if current trends persist. Average rent prices could also see moderate increases, potentially surpassing $1,600 per month within the same timeframe. However, these projections are subject to various economic factors and local market conditions.
In summary, zip code 06405 has demonstrated resilience in homeownership rates despite rising property values. The area has seen substantial growth in average home prices, particularly in recent years, while maintaining a relatively stable balance between owners and renters. The interplay between federal interest rates, property values, and housing tenure choices will likely continue to shape the local real estate landscape in the coming years.
