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Home Values and Ownership in Nunda: Zip Code 14517's Resilient Housing Market
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Zip code 14517, encompassing Nunda in New York, presents an intriguing case study of housing trends in a small rural community. Over the past decade, this area has maintained a relatively stable homeownership rate while experiencing significant fluctuations in both average home prices and average rent prices. The interplay between these factors offers valuable insights into the local real estate market dynamics.
Homeownership rates in zip code 14517 have remained remarkably consistent, hovering around 71-73% from 2013 to 2022. Despite this stability, average home prices have shown a steady upward trend. In 2013, the average home price was $90,823, which increased to $149,334 by 2022, representing a substantial 64.4% growth over nine years. This rise in home values did not significantly impact homeownership rates, suggesting that other factors, such as local economic conditions or community preferences, may have played a role in maintaining the high proportion of owner-occupied homes.
Federal interest rates have had a noticeable influence on the housing market in zip code 14517. As interest rates remained low, particularly from 2013 to 2016 when they were below 0.5%, average home prices showed modest but steady growth. The average home price increased from $90,823 in 2013 to $97,486 in 2016. As interest rates began to rise more significantly from 2017 onwards, reaching 1.83% in 2018, we observed a corresponding acceleration in home price appreciation, with the average home price jumping to $103,183 in 2018.
Renter percentages in zip code 14517 have remained relatively stable, fluctuating between 27% and 29% from 2013 to 2022. Average rent prices, however, have shown more volatility. In 2013, the average rent was $565, which decreased to $497 by 2016, a 12% drop. Subsequently, rent prices rebounded, reaching $659 by 2022, a 32.6% increase from the 2016 low. This trend suggests that while the proportion of renters remained steady, market conditions significantly influenced rental costs. The population decline from 2,492 in 2013 to 2,243 in 2022 may have contributed to the initial decrease in rent prices, followed by other factors driving the subsequent increase.
Looking at the most recent data, average home prices in zip code 14517 continued their upward trajectory, reaching $154,183 in 2023 and further climbing to $160,219 in 2024. This represents a 7.3% increase from 2022 to 2024. Concurrently, federal interest rates rose significantly, reaching 5.02% in 2023 and 5.33% in 2024. Despite these higher interest rates, which typically make mortgages more expensive, home prices in the area have continued to appreciate, indicating strong demand or limited supply in the local housing market.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 14517 will continue to rise, potentially reaching around $185,000 by 2029. This projection is based on the consistent upward trend observed over the past decade. For average rent prices, we expect a more moderate increase, potentially reaching approximately $720 by 2029, assuming the current growth rate continues.
In summary, zip code 14517 has demonstrated remarkable resilience in homeownership rates despite significant increases in average home prices. The area has weathered fluctuations in average rent prices while maintaining a stable renter population. The continued rise in home values, even in the face of higher interest rates, suggests a robust local housing market. Moving forward, we expect both home prices and rent prices to continue their upward trajectories, albeit at different rates, reflecting the ongoing demand for housing in this rural New York community.
