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Average Home Values and Ownership in Zip Code 11235: A Coastal Brooklyn Neighborhood's Housing Market 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
Zip code 11235, located in Brooklyn, New York, is a vibrant and diverse area known for its proximity to the beach and its mix of residential and commercial properties. Over the past decade, this neighborhood has experienced notable shifts in homeownership rates and housing costs, reflecting broader economic trends and local market dynamics. The homeownership rate in zip code 11235 has shown a gradual decline from 2013 to 2022. In 2013, 41% of residents owned their homes, but by 2022, this figure had decreased to 39%. This decline in homeownership coincided with a significant increase in average home prices. In 2013, the average home price was $431,848, which rose steadily to reach $662,589 by 2022, representing a substantial 53.4% increase over this period. The inverse relationship between homeownership rates and average home prices suggests that rising property values may have made homeownership less attainable for some residents.
Federal interest rates have played a role in shaping homeownership trends in zip code 11235. From 2013 to 2016, interest rates remained historically low, hovering around 0.1% to 0.4%. During this period, homeownership rates remained relatively stable at around 41-42%. However, as interest rates began to rise more significantly from 2017 onwards, reaching 1.68% in 2022, homeownership rates started to decline. This trend aligns with the general principle that higher interest rates can make mortgages more expensive, potentially discouraging homeownership.
As homeownership declined, the percentage of renters in zip code 11235 increased from 59% in 2013 to 61% in 2022. This shift towards renting was accompanied by a rise in average rent prices. In 2013, the average rent was $1,278, which increased to $1,436 by 2022, representing a 12.4% increase. The growth in the renter population, from 44,052 in 2013 to 48,335 in 2022, may have contributed to the upward pressure on rent prices due to increased demand for rental properties.
In 2023 and 2024, the housing market in zip code 11235 experienced a significant shift. The average home price dropped substantially from $662,589 in 2022 to $556,003 in 2023, a decrease of 16.1%. This downward trend continued into 2024, with prices further declining to $547,227. Concurrently, federal interest rates rose sharply to 5.02% in 2023 and 5.33% in 2024, likely contributing to the cooling of the housing market.
Looking ahead, based on recent trends and current market conditions, we can project potential scenarios for the next five years. Average home prices may stabilize or experience modest growth after the recent decline, potentially reaching around $580,000 by 2029. Average rent prices are likely to continue their upward trajectory, potentially reaching approximately $1,700 by 2029, assuming a similar rate of increase as observed in recent years.
In summary, zip code 11235 has witnessed a gradual shift towards renting, with homeownership rates declining as property values and rent prices have increased. The recent sharp decline in home prices, coupled with rising interest rates, marks a significant turning point in the local real estate market. These trends highlight the dynamic nature of the housing market in this Brooklyn neighborhood and the ongoing challenges in balancing affordability with market forces.
