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Average Home Values and Ownership in Zip Code 11971: A Coastal Community's Housing Market Dynamics
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Zip code 11971, located in Southold, New York, is a coastal area known for its picturesque landscapes and charming small-town atmosphere. Over the past decade, this community has experienced notable shifts in homeownership rates and property values, reflecting broader economic trends and local market dynamics. The homeownership rate in zip code 11971 has shown a gradual decline from 2013 to 2022. In 2013, the area boasted an 88% homeownership rate, which decreased to 81% by 2022. This 7% drop coincided with a significant increase in average home prices. In 2013, the average home price was $508,179, which rose steadily to reach $972,497 by 2022, representing a remarkable 91.4% increase over this period.
Federal interest rates have played a crucial role in shaping homeownership trends in the area. The period from 2013 to 2016 saw historically low interest rates, hovering around 0.1% to 0.4%. During this time, homeownership rates remained relatively stable, ranging from 87% to 89%. However, as interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, homeownership rates showed a more pronounced decline, dropping from 85% in 2017 to 81% in 2022.
The rental market in zip code 11971 has experienced its own set of changes. The percentage of renters increased from 6% in 2013 to 19% in 2022, more than tripling over this period. This shift corresponded with a rise in average rent prices, which increased from $1,490 in 2013 to $1,736 in 2022, a 16.5% increase. The population fluctuated during this time, peaking at 6,056 in 2021 before settling at 5,739 in 2022, suggesting that changes in the local economy and housing market may have influenced both population dynamics and rental trends.
In 2023 and 2024, the housing market in zip code 11971 continued its upward trajectory. The average home price reached $1,003,930 in 2023 and further increased to $1,032,539 in 2024, representing a 6.2% rise over these two years. Notably, federal interest rates also saw a significant increase, rising to 5.02% in 2023 and 5.33% in 2024, potentially impacting homebuying decisions in the area.
Looking ahead, predictive models suggest that the upward trend in both home prices and rent is likely to continue over the next five years. Average home prices are projected to increase by approximately 3-5% annually, potentially reaching around $1,250,000 by 2029. Average rent prices are expected to follow a similar trajectory, with an estimated annual increase of 2-4%, potentially reaching about $2,000 per month by 2029.
In summary, zip code 11971 has witnessed a significant transformation in its housing market over the past decade. The area has experienced a gradual shift from a predominantly owner-occupied community to one with a growing rental population. This change has occurred alongside substantial increases in both home values and rent prices. The interplay between federal interest rates, local economic factors, and population dynamics has shaped these trends, creating a complex and evolving housing landscape in this coastal New York community.
