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Average Home Values and Ownership in Zip Code 12817: A Decade of Stability and Growth in Chestertown, 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
Chestertown, located in zip code 12817 in New York, is a small community that has experienced fluctuations in population and housing dynamics over the past decade. This analysis explores the trends in homeownership rates, average home prices, and average rent prices in the area. The homeownership rate in Chestertown has remained relatively stable, with slight fluctuations between 2013 and 2022. In 2013, the homeownership rate was 80%, and by 2022, it stood at 81%. During this period, average home prices in the area saw a steady increase. In 2013, the average home price was $213,551, which rose to $321,030 by 2022, representing a significant 50.3% increase over nine years.
Federal interest rates have played a role in homeownership trends. From 2013 to 2016, interest rates remained very low, ranging from 0.11% to 0.4%. During this period, homeownership rates in Chestertown remained high, between 80% and 82%. As interest rates began to rise from 2017 onwards, there was a slight dip in homeownership, reaching a low of 75% in 2018 when the federal interest rate was 1.83%. However, the community showed resilience, with homeownership rates recovering to 81% by 2022, despite the interest rate climbing to 1.68%.
Renter percentages in Chestertown have shown an inverse relationship to homeownership rates, naturally. The renter-occupied housing units increased from 20% in 2013 to 25% in 2018, before decreasing to 19% in 2022. Average rent prices have fluctuated during this period. In 2013, the average rent was $852, which decreased to $793 by 2022, a 6.9% reduction. This trend is noteworthy as it contrasts with the rising home prices, potentially making renting more attractive for some residents.
In 2023 and 2024, Chestertown experienced a continued surge in average home prices. The average home price reached $341,867 in 2023 and further increased to $360,715 in 2024, representing a 12.4% increase from 2022 to 2024. This significant rise occurred despite federal interest rates climbing to 5.02% in 2023 and 5.33% in 2024, which are the highest rates seen in over a decade.
Looking ahead, based on the observed trends, we can forecast potential scenarios for the next five years. If the current trajectory continues, average home prices in Chestertown could potentially reach around $450,000 by 2029. However, this growth may slow down if interest rates remain high, potentially stabilizing prices. For rent prices, if the slight downward trend persists, we might see average rents decrease to around $750 by 2029. However, if population growth resumes its upward trend, rent prices could stabilize or even increase slightly.
In summary, Chestertown has demonstrated a strong preference for homeownership, maintaining high rates despite fluctuations in the housing market and interest rates. The significant increase in average home prices, particularly in recent years, suggests a growing demand for properties in the area. The interesting contrast between rising home prices and slightly declining rent prices presents a unique dynamic in this housing market, potentially influencing future housing choices for residents and newcomers alike.
