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Average Home Values and Ownership in Zip Code 10918: A Decade of Growth and Resilience in Chester, NY
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 10918, located in Chester, New York, has experienced notable shifts in homeownership rates and property values over the past decade. This area, spanning 34.48 square miles, has seen fluctuations in its population and housing market dynamics, reflecting broader economic trends and local factors.
The homeownership rate in zip code 10918 has remained relatively stable, hovering around 80% from 2013 to 2022. However, there have been slight variations, with the rate reaching a peak of 83% in 2015 and dropping to its lowest point of 77% in 2020. Interestingly, these changes in homeownership rates have coincided with significant shifts in average home prices. In 2013, the average home price was $249,700, and it steadily increased to $437,084 by 2022, representing a substantial 75% increase over this period.
The relationship between federal interest rates and homeownership rates in this area shows some correlation. For instance, the drop in homeownership to 77% in 2020 coincided with a period of historically low interest rates (0.38%). This could be attributed to increased investor activity in the real estate market, taking advantage of low borrowing costs. Conversely, as interest rates began to rise in 2022 (1.68%), homeownership rates rebounded to 81%, possibly due to potential buyers rushing to secure mortgages before rates climbed further.
Renter percentages in zip code 10918 have generally mirrored the inverse of homeownership rates, ranging from 17% to 23% between 2013 and 2022. The average rent prices have shown volatility, with significant fluctuations over the years. In 2013, the average rent was $1,391, peaking at $1,626 in 2021 before slightly decreasing to $1,574 in 2022. This represents a 13% increase in average rent from 2013 to 2022, a more modest rise compared to home prices. The population has remained relatively stable during this period, suggesting that changes in rent prices may be more influenced by local economic factors and housing supply rather than population growth.
In 2023 and 2024, the housing market in zip code 10918 continued its upward trajectory. The average home price reached $456,830 in 2023 and further increased to $484,104 in 2024, marking a 10.7% rise over these two years. This growth occurred despite the Federal Reserve's aggressive interest rate hikes, with rates climbing to 5.02% in 2023 and 5.33% in 2024. These high interest rates typically make mortgages more expensive, yet the continued rise in home prices suggests strong underlying demand in this area.
Looking ahead, predictive models suggest that the robust growth in average home prices in zip code 10918 is likely to continue, albeit at a potentially slower pace due to high interest rates. Over the next five years, average home prices could potentially reach the $550,000 to $600,000 range. Average rent prices are also expected to increase, possibly surpassing $1,800 per month, driven by ongoing demand for rental properties and the overall appreciation of real estate in the area.
In summary, zip code 10918 has demonstrated resilience in its housing market, with consistently high homeownership rates and substantial growth in property values. The area has weathered economic fluctuations and interest rate changes while maintaining a strong real estate market. The continued rise in both home prices and rents, even in the face of higher interest rates, indicates a robust local economy and sustained demand for housing in this New York village.
