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Average Home Values and Ownership in Zip Code 06807: Cos Cob's Waterfront Real Estate Trends
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
Cos Cob, located in zip code 06807 in Connecticut, is a charming community known for its picturesque waterfront views and historic charm. Over the past decade, this area has experienced notable shifts in homeownership rates and housing prices, reflecting broader economic trends and local market dynamics.
The homeownership rate in Cos Cob has shown a gradual decline from 2013 to 2022. In 2013, 78% of residents were homeowners, but by 2022, this figure had decreased to 67%. Interestingly, this downward trend in homeownership coincided with a significant increase in average home prices. In 2012, the average home price was $880,337, which rose steadily to reach $1,347,642 by 2022, representing a 53% increase over this period. This inverse relationship suggests that rising home prices may have made homeownership less accessible for some residents.
Federal interest rates have played a crucial role in shaping homeownership trends in Cos Cob. The period from 2012 to 2015 saw historically low interest rates, hovering around 0.1% to 0.13%. During this time, homeownership rates remained relatively stable at around 76-78%. However, as interest rates began to rise from 2016 onwards, reaching 1.83% by 2018, homeownership rates started to decline more noticeably, dropping to 73% by 2018. This trend aligns with the general principle that lower interest rates encourage homeownership due to more affordable financing options.
The renter population in Cos Cob has correspondingly increased from 22% in 2013 to 33% in 2022. This rise in renters has been accompanied by fluctuations in average rent prices. In 2013, the average rent was $1,740, which decreased to $1,567 by 2015. However, rent prices then surged to $2,021 in 2016 before settling at $1,847 in 2022. The population growth from 6,104 in 2010 to 7,038 in 2022 may have contributed to the increased demand for rental properties, potentially influencing these price variations.
As of 2024, the average home price in Cos Cob has reached $1,515,105, representing a substantial increase from the 2022 figures. This surge in home prices has occurred despite the federal interest rate rising to 5.33% in 2024, which is significantly higher than the rates seen in the previous decade. The 2023 data shows an intermediate step in this upward trajectory, with average home prices at $1,432,192 and interest rates at 5.02%.
Looking ahead, predictive models suggest that average home prices in Cos Cob are likely to continue their upward trend over the next five years, potentially reaching or exceeding $1.7 million by 2029. Rent prices are also expected to increase, albeit at a more moderate pace, potentially surpassing $2,000 per month on average within the same timeframe.
In summary, Cos Cob has experienced a notable shift from homeownership to renting over the past decade, driven by rising home prices and fluctuating interest rates. The significant increase in average home prices, coupled with the recent spike in interest rates, suggests a challenging environment for potential homebuyers. However, the consistent population growth and the area's desirability continue to drive demand in both the ownership and rental markets, indicating a dynamic and evolving real estate landscape in this Connecticut community.
