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Average Home Values and Ownership in Zip Code 12885: A Scenic Rural Area's Housing Trends
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
Warrensburg, located in zip code 12885 in New York, has experienced notable shifts in its housing landscape over the past decade. This analysis examines the trends in homeownership, average home prices, and average rent prices, providing insights into the changing dynamics of the local real estate market.
The homeownership rate in Warrensburg has fluctuated over the years, showing a general downward trend from 2013 to 2018, followed by a slight recovery. In 2013, the homeownership rate stood at 79%, which gradually decreased to 69% by 2018. However, it rebounded to 74% in 2022. Concurrently, average home prices in the area have shown a steady upward trajectory. In 2013, the average home price was $135,214, which increased to $211,376 by 2022, representing a substantial 56.3% growth over this period.
The relationship between federal interest rates and homeownership rates in Warrensburg follows a generally inverse pattern. As interest rates remained low from 2013 to 2016 (ranging from 0.09% to 0.4%), homeownership rates initially held steady at 79%. However, as interest rates began to rise from 2017 onwards, reaching 1.83% in 2018, homeownership rates declined to their lowest point of 69%. The subsequent decrease in interest rates in 2020 and 2021 coincided with a rebound in homeownership rates to 74% by 2022.
Renter percentages in Warrensburg have shown an inverse relationship to homeownership rates, increasing from 21% in 2013 to a peak of 31% in 2018, before settling at 26% in 2022. Average rent prices have fluctuated over this period, with some correlation to renter percentages. In 2013, the average rent was $950, which decreased to $772 in 2014 as renter percentages remained stable. As renter percentages increased, average rent rose to $883 by 2018. However, despite a slight decrease in renter percentages, average rent continued to rise, reaching $852 in 2022.
The years 2023 and 2024 have seen continued growth in average home prices in Warrensburg. In 2023, the average home price reached $219,373, a 3.8% increase from 2022. By 2024, it further climbed to $230,621, representing a 5.1% year-over-year increase. This growth occurred despite a significant rise in federal interest rates, which stood at 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 Warrensburg are likely to continue their upward trajectory over the next five years, albeit at a potentially slower pace due to higher interest rates. Average rent prices are also expected to increase moderately, driven by ongoing demand for rental properties and overall housing market trends.
In summary, Warrensburg's housing market has demonstrated resilience and growth, with rising average home prices and a recent recovery in homeownership rates. The interplay between interest rates, homeownership, and rental trends highlights the complex dynamics shaping the local real estate landscape. As the market continues to evolve, these trends will likely play a crucial role in determining housing affordability and accessibility in the area.
