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Average Home Values and Ownership in Zip Code 12780: A Decade of Change in Sparrow Bush, New York
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 12780, located in Sparrow Bush, New York, has experienced notable fluctuations in homeownership rates and housing prices over the past decade. This area, with its population of 2,387 in 2022, has seen significant shifts in its real estate landscape, reflecting broader economic trends and local market dynamics.
The homeownership rate in zip code 12780 has shown a general decline from 2013 to 2022. In 2013, 81% of residents were homeowners, but by 2022, this figure had dropped to 73%. This decline coincides with a substantial increase in average home prices. In 2013, the average home price was $149,765, which rose dramatically to $281,367 by 2022, representing an 87.9% increase over nine years. This inverse relationship suggests that rising home prices may have made homeownership less accessible for some residents.
Federal interest rates have played a significant role in shaping homeownership trends. From 2013 to 2016, when interest rates were very low (ranging from 0.11% to 0.4%), homeownership rates in the area actually increased, peaking at 95% in 2017. This aligns with the general trend of lower interest rates encouraging homeownership due to more affordable financing options. However, as interest rates began to rise more significantly from 2017 onwards, reaching 1.68% in 2022, homeownership rates started to decline, dropping to 73% by 2022.
The rental market in zip code 12780 has shown interesting trends as well. The percentage of renters increased from 19% in 2013 to 27% in 2022. However, average rent prices have not followed a consistent upward trend. In 2013, the average rent was $1,347, which increased to a peak of $1,656 in 2016 before declining to $936 in 2022. This drop in average rent prices, despite an increase in the renter population, could be due to various factors such as an increase in available rental units or economic pressures affecting the local market.
Looking at the most recent data, average home prices in zip code 12780 continued to rise, reaching $298,674 in 2023 and $316,825 in 2024. This represents a 12.6% increase from 2022 to 2024. Simultaneously, federal interest rates have also increased significantly, reaching 5.02% in 2023 and 5.33% in 2024. These high interest rates, combined with rising home prices, may further impact homeownership rates in the area.
Applying predictive models to forecast 5-year trends, we can expect average home prices in zip code 12780 to continue their upward trajectory, potentially reaching around $380,000 by 2029. However, this growth rate may slow down due to the current high interest rates. Average rent prices, which have been more volatile, are predicted to stabilize and potentially increase moderately, possibly reaching around $1,200 per month by 2029, assuming economic conditions remain stable and housing supply keeps pace with demand.
In summary, zip code 12780 has experienced a significant increase in average home prices over the past decade, coinciding with a decline in homeownership rates. The rental market has grown, but with fluctuating average rent prices. Recent high interest rates and continued home price appreciation present challenges for potential homebuyers, potentially leading to a further increase in the renter population in the coming years. These trends reflect the complex interplay between housing affordability, economic conditions, and demographic shifts in this New York community.
