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Average Home Values and Ownership in Zip Code 10454: A Bronx Neighborhood with High Rental Occupancy
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 10454, located in the Bronx, New York, is a densely populated urban area covering just 1.11 square miles. This neighborhood has experienced significant changes in its housing market over the past decade, with notable trends in homeownership rates, average home prices, and average rent prices.
The homeownership rate in zip code 10454 has remained remarkably stable, hovering around 5-6% from 2013 to 2022. Despite this consistency, average home prices have shown a dramatic upward trend. In 2010, the average home price was $410,325, which increased to $740,790 by 2022, representing an impressive 80.5% growth over 12 years. This substantial rise in home values occurred despite the relatively low and stable homeownership rate, suggesting strong demand from investors or a limited supply of available homes for sale.
Federal interest rates have played a role in shaping the housing market in zip code 10454. From 2010 to 2016, interest rates remained exceptionally low, ranging from 0.09% to 0.40%. During this period, average home prices in the area increased moderately from $410,325 to $442,616. As interest rates began to rise more significantly from 2017 (1.00%) to 2019 (2.16%), we observed a corresponding acceleration in home price appreciation, with values jumping from $501,110 in 2017 to $582,630 in 2019. This trend suggests that despite rising interest rates, other factors such as local economic growth or housing scarcity may have been driving the market.
The rental market in zip code 10454 has shown equally interesting trends. The percentage of renters has consistently been around 94-95% from 2013 to 2022, indicating a predominantly renter-occupied area. Average rent prices have steadily increased over time, rising from $759 in 2013 to $913 in 2022, a 20.3% increase. This growth in rent prices, while significant, has been less dramatic than the rise in home values. The area's high population density, which increased from 34,715 people per square mile in 2013 to 36,723 in 2022, likely contributed to the sustained demand for rental properties and the upward pressure on rent prices.
In 2023 and 2024, we see some interesting developments in the housing market for zip code 10454. The average home price in 2023 was $710,344, showing a slight decrease from the 2022 peak of $740,790. However, in 2024, prices have rebounded somewhat to $723,923. This slight fluctuation could be attributed to the significant increase in federal interest rates, which rose from 1.68% in 2022 to 5.02% in 2023 and further to 5.33% in 2024. These higher interest rates may have temporarily cooled the housing market, but the subsequent price recovery suggests underlying strength in the local real estate market.
Looking ahead, based on historical trends and current market conditions, we can predict that average home prices in zip code 10454 will continue to appreciate, albeit at a more moderate pace. Over the next five years, we might expect average home prices to increase by 15-20%, reaching approximately $850,000 to $870,000 by 2029. Average rent prices are likely to follow a similar trajectory, potentially increasing by 10-15% over the same period, which could bring the average rent to around $1,050 to $1,100 per month.
In summary, zip code 10454 in the Bronx has demonstrated a robust and dynamic housing market. Despite consistently low homeownership rates, the area has seen substantial appreciation in home values. The rental market remains dominant, with steadily increasing rents reflecting the high demand for housing in this densely populated urban area. Recent fluctuations in home prices and the impact of rising interest rates highlight the market's responsiveness to broader economic factors, but the overall trend suggests continued growth in both home values and rental prices in the coming years.
