Loading Content...
Average Home Values and Ownership: Zip Code 12771's Real Estate Trends at the Confluence of Rivers
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Port Jervis, located in zip code 12771 in New York state, presents an interesting case study in real estate trends over the past decade. This small city has experienced fluctuations in homeownership rates and significant changes in average home and rent prices. The overall trend shows a slight decrease in homeownership, coupled with a substantial increase in average home prices and moderate growth in average rent prices.
The homeownership rate in Port Jervis has shown some variability between 2013 and 2022. In 2013, the homeownership rate stood at 60%. It peaked at 65% in 2017 before declining to 59% in 2022. This trend coincides with changes in average home prices, which have seen a significant increase over the same period. In 2013, the average home price was $140,430. By 2022, it had risen to $250,130, representing a substantial 78% increase over nine years. This sharp rise in home prices may have contributed to the slight decline in homeownership rates, as higher prices can make homeownership less accessible for some residents.
Federal interest rates have played a role in shaping homeownership trends in Port Jervis. The period from 2013 to 2016 saw historically low interest rates, hovering around 0.1% to 0.4%. During this time, homeownership rates remained relatively stable, between 60% and 63%. As interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, there was a slight downward trend in homeownership rates. This aligns with the general principle that higher interest rates can make mortgages more expensive, potentially discouraging homeownership.
The rental market in Port Jervis has also experienced changes. The percentage of renters increased from 35% in 2017 to 41% in 2022. This rise in the renter population coincided with fluctuations in average rent prices. In 2013, the average rent was $1,121. It peaked at $1,271 in 2021 before slightly decreasing to $1,154 in 2022. The overall trend shows a modest 2.9% increase in average rent from 2013 to 2022. The population of Port Jervis has remained relatively stable during this period, with only minor fluctuations, suggesting that changes in the rental market are more likely driven by economic factors and housing availability rather than significant population shifts.
In 2023 and 2024, the real estate market in Port Jervis continued to evolve. The average home price in 2023 was $262,313, showing a further increase from 2022. In 2024, the average home price rose to $280,068, indicating a continued upward trend in property values. Notably, federal interest rates also increased significantly during this period, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homeownership rates and market dynamics in Port Jervis.
Looking ahead, predictive models suggest that average home prices in Port Jervis are likely to continue their upward trajectory over the next five years, albeit potentially at a slower rate due to higher interest rates. Average rent prices are expected to follow a similar trend, with moderate increases to keep pace with rising property values and inflation. However, if interest rates remain high, it could lead to a greater demand for rentals, potentially accelerating the growth in average rent prices.
In summary, Port Jervis has experienced a notable increase in average home prices over the past decade, with a slight decrease in homeownership rates. The rental market has seen a moderate increase in both the percentage of renters and average rent prices. The recent sharp rise in interest rates, combined with continued growth in home prices, suggests that the real estate market in Port Jervis may face new challenges and opportunities in the coming years, potentially favoring a stronger rental market if homeownership becomes less accessible due to higher costs of financing.
