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Average Home Values and Ownership in Zip Code 11704: West Babylon's Resilient Housing Market
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 11704, located in West Babylon, New York, is a dynamic area that has experienced significant changes in homeownership rates and housing prices over the past decade. This analysis will explore the trends in ownership percentages, average home prices, and average rent prices, providing insights into the local real estate market.
The homeownership rate in zip code 11704 has remained relatively stable, fluctuating between 74% and 77% from 2013 to 2022. During this period, average home prices have shown a notable upward trend. In 2013, the average home price was $309,180, which increased to $509,485 by 2022, representing a substantial 64.8% increase over nine years. This rise in home prices did not significantly impact homeownership rates, suggesting a resilient local housing market.
Federal interest rates have played a role in shaping homeownership trends. From 2013 to 2016, interest rates remained below 0.5%, coinciding with a slight decrease in homeownership from 76% to 74%. As interest rates began to rise from 2017 to 2019, reaching 2.16% in 2019, homeownership rates stabilized around 74-75%. Interestingly, when interest rates dropped dramatically to 0.08% in 2021, homeownership increased to 76%, aligning with the general trend of lower interest rates encouraging homeownership.
Renter percentages in zip code 11704 have shown minimal fluctuation, ranging from 23% to 25% between 2013 and 2022. Average rent prices, however, have experienced a steady increase. In 2013, the average rent was $1,711, which rose to $2,118 by 2022, marking a 23.8% increase. This rise in rent prices occurred despite a slight decrease in population from 39,764 in 2013 to 38,752 in 2022, suggesting that factors other than population growth, such as overall market conditions and housing supply, may be influencing rent prices.
Looking at more recent data, the average home price in zip code 11704 continued its upward trajectory, reaching $517,067 in 2023 and further increasing to $560,057 in 2024. This represents a significant 8.3% increase from 2023 to 2024. Concurrently, federal interest rates have risen sharply, reaching 5.02% in 2023 and 5.33% in 2024, which may impact future homeownership rates and housing affordability in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 11704 will continue to rise, potentially reaching around $650,000 by 2029. This projection is based on the consistent upward trend observed over the past decade. Average rent prices are also expected to increase, potentially reaching approximately $2,500 by 2029, following the steady upward trajectory seen in recent years.
In summary, zip code 11704 has demonstrated a robust housing market with steadily increasing average home and rent prices. Despite these increases, homeownership rates have remained relatively stable, indicating a strong local economy and desirable living conditions. The recent sharp rise in interest rates may introduce new dynamics to the market, potentially affecting affordability and homeownership rates in the coming years. The continued upward trend in both home prices and rents suggests that this area remains an attractive location for both homeowners and investors.
