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Average Home Values and Ownership in Zip Code 12978: Redford's Shift to 100% Homeownership
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 12978, located in Redford, New York, is a small rural area with a population of 59 as of 2022. This zip code has experienced significant shifts in homeownership rates and housing prices over the past decade, making it an interesting case study for real estate trends in small communities.
The homeownership rate in zip code 12978 has seen a notable increase in recent years, reaching 100% in 2021 and 2022. This trend coincides with a steady rise in average home prices. In 2010, the average home price was $75,681, and by 2022, it had climbed to $128,119, representing a substantial 69% increase over 12 years. The most significant jump occurred between 2020 and 2022, with prices rising from $100,287 to $128,119, a 27.8% increase in just two years.
Federal interest rates have played a role in shaping homeownership trends in zip code 12978. The period of historically low interest rates from 2010 to 2021, ranging from 0.08% to 0.4%, likely contributed to the increased affordability of homes and the rise in homeownership rates. For instance, as interest rates remained low at 0.08% in 2021, the homeownership rate reached 100%, suggesting a strong correlation between low interest rates and high homeownership.
Renter percentages in zip code 12978 have fluctuated over the years, showing an inverse relationship with homeownership rates. In 2013, the renter-occupied percentage was 14%, which increased to 23% in 2015. However, as homeownership rates rose, the renter percentage declined, reaching 4% in 2020 before dropping to 0% in 2021 and 2022. The average rent price remained stable at $850 from 2013 to 2020, with a slight decrease to $849 in 2021. This stability in rent prices, coupled with the increasing home values, may have incentivized renters to transition to homeownership.
In 2023, the average home price in zip code 12978 continued to rise, reaching $129,618. This represents a 1.2% increase from 2022. Moving into 2024, the average home price has further increased to $133,952, showing a 3.3% growth from 2023. Concurrently, federal interest rates have significantly increased, rising from 1.68% in 2022 to 5.02% in 2023, and further to 5.33% in 2024. These higher interest rates may impact future homeownership trends and housing affordability in the area.
Looking ahead, based on the historical data and current trends, we can project that average home prices in zip code 12978 will continue to rise over the next five years, albeit potentially at a slower rate due to higher interest rates. A conservative estimate suggests average home prices could reach approximately $150,000 to $160,000 by 2029. Rent prices, which have been stable for several years, may see modest increases to keep pace with rising property values, potentially reaching around $900 to $950 per month by 2029.
In summary, zip code 12978 has experienced a significant shift towards homeownership, with a 100% owner-occupied rate in recent years. This trend has been accompanied by a substantial increase in average home prices, particularly between 2020 and 2022. The area has maintained stable rent prices, which, combined with low interest rates until recently, likely contributed to the transition from renting to owning. As interest rates rise and home prices continue to increase, it will be crucial to monitor how these factors affect homeownership rates and housing affordability in this small New York community.
