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Average Home Values and Ownership in Zip Code 12182: Troy's Shifting Housing 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
Zip code 12182, representing Troy in New York, is a historic area known for its rich industrial heritage and vibrant cultural scene. This zip code has experienced notable shifts in homeownership rates and housing prices over the past decade, reflecting broader economic trends and local market dynamics.
The homeownership rate in zip code 12182 has shown a general decline from 2013 to 2022. In 2013, 57% of housing units were owner-occupied, but by 2022, this figure had dropped to 49%. This downward trend in homeownership coincides with a significant increase in average home prices. The average home price in the area rose from $142,420 in 2013 to $214,052 in 2022, representing a substantial 50.3% increase over this period.
Federal interest rates play a crucial role in homeownership trends. The period from 2013 to 2016 saw historically low interest rates, ranging from 0.11% to 0.40%. Despite these favorable borrowing conditions, homeownership in zip code 12182 continued to decline, suggesting that other local factors were influencing this trend. As interest rates began to rise more significantly from 2017 (1.00%) to 2019 (2.16%), the homeownership rate continued its downward trajectory, reaching 52% by 2019.
Conversely, the percentage of renters in zip code 12182 has steadily increased. In 2013, 43% of housing units were renter-occupied, and this figure rose to 51% by 2022. This shift towards renting aligns with the trend in average rent prices, which have generally increased over the same period. The average rent price rose from $914 in 2013 to $882 in 2022, with some fluctuations in between. Notably, the average rent reached a peak of $956 in 2021 before decreasing slightly in 2022.
In 2023 and 2024, the housing market in zip code 12182 continued to evolve. The average home price further increased to $222,576 in 2023 and $231,429 in 2024, representing an 8.1% rise from 2022 to 2024. This growth occurred despite a significant increase in federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024, potentially impacting affordability for prospective homebuyers.
Looking ahead, predictive models suggest that average home prices in zip code 12182 may continue to rise over the next five years, albeit at a potentially slower rate due to higher interest rates. Average rent prices are also projected to increase, driven by the growing demand for rental properties in the area. These trends could further shift the balance between homeownership and renting in the zip code.
In summary, zip code 12182 has experienced a clear trend of declining homeownership and rising home prices over the past decade. The shift towards renting, coupled with fluctuating rent prices, reflects changing housing preferences and economic conditions in the area. The recent sharp increase in interest rates, combined with continued home price appreciation, may further impact housing affordability and homeownership rates in the coming years.
