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Average Home Values and Ownership in Zip Code 14840: Hammondsport's Resilient Real Estate Market
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Zip code 14840, located in Hammondsport, New York, showcases an interesting demographic and real estate landscape. This rural area has experienced notable shifts in homeownership rates and property values over the past decade. The overall trend indicates a steady increase in homeownership, coupled with significant growth in average home prices and average rent rates.
The homeownership rate in zip code 14840 has shown a consistent upward trend, rising from 84% in 2013 to 88% in 2022. This increase in homeownership coincided with a substantial rise in average home prices. In 2013, the average home price was $191,422, which grew steadily to reach $320,484 by 2022, representing a remarkable 67.4% increase over this period. The most significant jump occurred between 2020 and 2022, with average home prices surging from $234,959 to $320,484, a 36.4% increase in just two years.
Federal interest rates have played a crucial role in shaping homeownership trends in the area. The period from 2013 to 2020 saw historically low interest rates, ranging from 0.09% to 2.16%. These low rates likely contributed to the increased homeownership, making mortgages more affordable for residents. The slight dip in homeownership from 88% in 2020 to 86% in 2019 coincided with a small increase in interest rates to 2.16% in 2019, demonstrating the sensitivity of the housing market to rate changes.
The rental market in zip code 14840 has experienced its own set of changes. As homeownership increased, the percentage of renters decreased from 16% in 2013 to 12% in 2022. Despite this decline, average rent prices saw a significant uptick. In 2013, the average rent was $655, which rose to $789 by 2022, marking a 20.5% increase. The most dramatic increase occurred between 2017 and 2019, with average rent jumping from $696 to $843, a 21.1% rise in just two years. This increase in rent prices, despite a decreasing renter population, suggests a tightening rental market with potentially limited supply.
In 2023 and 2024, the housing market in zip code 14840 continued its upward trajectory. The average home price reached $334,388 in 2023 and further increased to $339,355 in 2024, representing a 5.9% growth over these two years. This growth occurred despite a significant rise in federal interest rates, which reached 5.02% in 2023 and 5.33% in 2024. These higher interest rates could potentially slow down the rapid home price appreciation seen in previous years.
Looking ahead, predictive models suggest that the upward trend in both average home prices and average rent prices is likely to continue, albeit at a more moderate pace. Over the next five years, average home prices in zip code 14840 are projected to increase by approximately 15-20%, potentially reaching around $390,000 to $410,000 by 2029. Average rent prices are expected to follow a similar trajectory, with an estimated increase of 10-15%, potentially reaching $870 to $910 per month by 2029.
In summary, zip code 14840 has experienced a significant shift towards homeownership, accompanied by substantial increases in both average home prices and average rent rates. The area has shown resilience in its real estate market, with property values continuing to rise even in the face of increasing interest rates. These trends suggest a strong local housing market with potential for continued growth, albeit at a more moderate pace in the coming years.
