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Average Home Values and Ownership in Zip Code 11217: A Decade of Stability Amidst Rising Prices
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 11217, located in Brooklyn, New York, has experienced significant changes in its real estate landscape over the past decade. This area has seen a general trend of increasing average home prices and average rent prices, while homeownership rates have remained relatively stable. The interplay between these factors provides insight into the evolving housing market in this vibrant Brooklyn neighborhood.
The homeownership rate in zip code 11217 has remained relatively stable, fluctuating between 29% and 31% from 2013 to 2022. Despite this consistency, average home prices have shown a dramatic increase. In 2010, the average home price was $805,732, which rose to $1,455,378 by 2022, representing an 80.6% increase over 12 years. This substantial growth in home values did not correlate with a significant change in homeownership rates, suggesting that other factors, such as income levels or housing preferences, may have played a role in maintaining the ownership-to-rental ratio.
Federal interest rates have shown considerable fluctuation over the years, potentially influencing homeownership trends. From 2010 to 2015, interest rates remained very low, hovering between 0.09% and 0.18%. During this period, homeownership rates in zip code 11217 were relatively stable at around 29%. As interest rates began to rise from 2016 onwards, reaching 1.68% in 2022, there was a slight increase in homeownership to 30% in 2022. This suggests that despite rising interest rates, other factors may have encouraged homeownership in the area.
The renter population in zip code 11217 has consistently accounted for the majority of residents, ranging from 69% to 71% between 2013 and 2022. Average rent prices have shown a steady increase during this period. In 2013, the average rent was $1,748, which rose to $2,229 by 2022, representing a 27.5% increase over nine years. This increase in rent prices coincided with population growth, from 39,307 in 2013 to 43,819 in 2022, indicating a strong demand for rental properties in the area.
In 2023 and 2024, the average home prices in zip code 11217 showed a slight decline from the 2022 peak. The average home price in 2023 was $1,419,796, a 2.4% decrease from 2022. In 2024, it further decreased to $1,369,211, representing a 3.6% drop from 2023. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, potentially contributing to the cooling of home prices.
Looking ahead, predictive models suggest that average home prices in zip code 11217 may experience a period of stabilization or slight decline over the next five years, given the recent trend and higher interest rates. Average rent prices, however, are projected to continue their upward trajectory, albeit at a potentially slower rate, driven by the area's consistent popularity and high renter population.
In conclusion, zip code 11217 has demonstrated resilience in its housing market, with steadily increasing average home and rent prices over the past decade despite relatively stable homeownership rates. The recent slight decline in home prices, coupled with rising interest rates, suggests a potential market correction. However, the persistent high demand for rental properties indicates that the area remains attractive to residents. Moving forward, we can expect a period of market adjustment, with possible stabilization in home prices and continued, though potentially moderated, growth in rental rates.
