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Bedford in Zip Code 10506: Rising Home Values and Ownership Amid Interest Rate Fluctuations
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
Bedford, located in zip code 10506 in New York, is a relatively affluent area characterized by high homeownership rates and substantial average home prices. Over the past decade, this community has experienced notable shifts in its real estate landscape, with increasing homeownership percentages and fluctuating average home and rent prices.
The homeownership rate in Bedford has shown a steady upward trend, rising from 87% in 2013 to an impressive 95% in 2022. This increase in homeownership coincided with significant changes in average home prices. In 2013, the average home price was $1,062,138, which increased to $1,344,749 by 2022, representing a 26.6% increase over nine years. Notably, there was a substantial jump in average home prices between 2020 and 2021, from $1,030,018 to $1,189,746, a 15.5% increase in just one year.
The relationship between federal interest rates and homeownership rates in Bedford appears to follow the general trend of lower interest rates encouraging homeownership. For instance, as interest rates remained low from 2013 to 2020 (ranging from 0.09% to 0.38%), homeownership rates steadily increased from 87% to 94%. Even as interest rates began to rise in 2022 to 1.68%, the homeownership rate continued to climb, reaching 95%, suggesting other factors such as local market conditions and demographics may also play a significant role in this area.
The percentage of renters in Bedford has decreased correspondingly, from 13% in 2013 to just 5% in 2022. Despite this decline in the renter population, average rent prices have shown an upward trend. In 2013, the average rent was $2,249, which increased to $2,830 by 2022, representing a 25.8% increase over nine years. This rise in rent prices, despite a decreasing renter population, could be attributed to the overall increase in property values and the limited supply of rental properties in the area.
Looking at the most recent data, the average home price in Bedford continued to rise in 2023, reaching $1,368,157, and further increased to $1,426,299 in 2024. This represents a 6.1% increase from 2022 to 2024. Simultaneously, federal interest rates have significantly increased, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates could potentially impact future homeownership rates and housing affordability in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in Bedford will continue to rise, albeit at a potentially slower rate due to the higher interest rate environment. We project that by 2029, average home prices could reach approximately $1,600,000 to $1,700,000. Average rent prices are also expected to increase, potentially reaching around $3,200 to $3,400 per month by 2029.
In summary, Bedford (10506) has experienced a significant increase in homeownership rates over the past decade, accompanied by substantial growth in average home prices. Despite a decreasing renter population, average rent prices have also risen considerably. The area's real estate market has shown resilience and growth, even in the face of changing economic conditions and rising interest rates. As we look to the future, the trends suggest continued appreciation in both home values and rent prices, although the pace of growth may be influenced by broader economic factors and local market dynamics.
