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Average Home Values and Ownership in Zip Code 11224: Brooklyn's Evolving Real Estate Landscape
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
Brooklyn's zip code 11224, which includes the iconic Coney Island neighborhood, has experienced significant shifts in its real estate landscape over the past decade. This area has seen fluctuations in homeownership rates and substantial increases in both average home prices and average rent prices, reflecting the dynamic nature of New York City's housing market.
The homeownership rate in zip code 11224 has remained relatively stable, with slight fluctuations between 25% and 30% from 2013 to 2022. Despite this stability, average home prices have shown a dramatic upward trend. In 2010, the average home price was $223,634, which steadily increased to $617,197 by 2022, representing a remarkable 176% increase over 12 years. This substantial growth in average home prices, particularly from 2015 to 2021, did not correspond with a significant change in homeownership rates, suggesting that rising prices may have made it challenging for new buyers to enter the market.
Federal interest rates have played a role in the housing market of zip code 11224. From 2010 to 2015, when interest rates were historically low (ranging from 0.09% to 0.18%), the homeownership rate remained relatively stable. However, as interest rates began to rise from 2016 (0.4%) to 2019 (2.16%), there was a slight decline in homeownership from 27% in 2016 to 25% in 2019. This trend aligns with the general principle that higher interest rates can make mortgages less affordable, potentially discouraging homeownership.
The rental market in zip code 11224 has also seen significant changes. The percentage of renters increased slightly from 71% in 2014 to 75% in 2019, before settling back to 71% in 2022. Average rent prices have shown a steady upward trend, rising from $925 in 2013 to $1,047 in 2022, an increase of 13.2% over nine years. This increase in average rent prices, coupled with the area's growing population (from 42,807 in 2013 to 49,927 in 2022), suggests a strong demand for rental properties in the area.
In 2023 and 2024, the housing market in zip code 11224 experienced a notable shift. The average home price decreased from $617,197 in 2022 to $530,411 in 2023, a 14% drop. This decline continued slightly into 2024, with the average home price at $528,863. Concurrently, federal interest rates rose significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates likely contributed to the cooling of home prices, as higher borrowing costs tend to dampen demand in the housing market.
Looking ahead, predictive models suggest that average home prices in zip code 11224 may stabilize or experience modest growth over the next five years, assuming interest rates remain elevated. The recent price correction could make homeownership more attainable for some buyers, potentially leading to a slight increase in homeownership rates. Average rent prices are expected to continue their upward trend, albeit at a more moderate pace, driven by the area's consistent population growth and the high demand for rental properties in Brooklyn.
In summary, zip code 11224 has demonstrated resilience in its housing market, with stable homeownership rates despite significant increases in average home prices over the past decade. The rental market remains strong, with a high percentage of renters and steadily increasing average rent prices. The recent cooling in the housing market, influenced by rising interest rates, may present new opportunities and challenges for both homeowners and renters in this dynamic Brooklyn neighborhood.
