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Average Home Values and Ownership in Zip Code 12205: Resilient Market Amid Rising Prices
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 12205, located in Roessleville, New York, has experienced notable fluctuations in homeownership rates and housing prices over the past decade. This area has maintained a relatively stable population, with a slight decrease from 29,216 in 2019 to 28,734 in 2022. The ownership percentage has shown a modest increase, while average home prices have demonstrated significant growth.
The homeownership rate in zip code 12205 has seen a gradual rise from 68% in 2015 to 71% in 2022. This increase coincides with a substantial growth in average home prices, which rose from $184,210 in 2015 to $267,309 in 2022, representing a 45.1% increase over seven years. The relationship between ownership rates and home prices suggests that despite rising costs, more residents have been able to transition into homeownership.
Federal interest rates have played a crucial role in shaping homeownership trends. The period from 2015 to 2020 saw historically low interest rates, ranging from 0.13% to 0.38%. This low-interest environment likely contributed to the increase in homeownership, as it made mortgages more affordable for potential buyers. The slight dip in ownership from 71% in 2020 to 70% in 2019 might be attributed to the gradual rise in interest rates from 2015 to 2019, which peaked at 2.16% in 2019 before dropping again in 2020.
Renter percentages in zip code 12205 have shown a corresponding decrease from 31% in 2015 to 29% in 2022. Interestingly, average rent prices have increased during this period, rising from $1,195 in 2015 to $1,255 in 2022, a 5% increase. This trend suggests that while fewer residents are renting, those who do are paying higher prices. The population has remained relatively stable during this period, indicating that the shift from renting to owning is not driven by significant demographic changes.
In 2023 and 2024, average home prices in zip code 12205 continued their upward trajectory, reaching $283,167 in 2023 and $297,999 in 2024. This represents a 5.9% increase from 2023 to 2024. Notably, federal interest rates also rose significantly during this period, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homeownership trends, potentially making it more challenging for new buyers to enter the market.
Looking ahead, predictive models suggest that average home prices in zip code 12205 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 expected to increase, possibly at a faster rate than in recent years, as higher mortgage costs may keep more people in the rental market. However, the area's stable population and consistent demand for housing could help maintain a balance between ownership and rental markets.
In summary, zip code 12205 has experienced a trend of increasing homeownership rates alongside rising home prices over the past decade. The interplay between federal interest rates, home prices, and rent costs has shaped the housing market dynamics in this area. While homeownership has grown, recent increases in interest rates and continued price appreciation may present challenges for future buyers, potentially influencing the balance between owners and renters in the coming years.
