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Home Values and Ownership in Zip Code 06478: A Decade of Growth in East Village, Connecticut
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 06478, located in East Village, Connecticut, has experienced notable shifts in homeownership rates and housing market dynamics over the past decade. This area has maintained a high rate of owner-occupied housing, with a slight increase in recent years, while average home prices have shown significant growth, particularly in the last few years.
The homeownership rate in zip code 06478 has remained consistently high, increasing from 87% in 2015 to 92% in 2022. This upward trend in homeownership coincides with a substantial rise in average home prices. In 2015, the average home price was $331,812, which steadily increased to $463,241 by 2022, representing a 39.6% increase over seven years. The correlation between rising homeownership rates and increasing home prices suggests a strong demand for property ownership in this area, despite the growing costs.
Federal interest rates have played a significant role in shaping homeownership trends in zip code 06478. From 2015 to 2020, interest rates remained relatively low, ranging from 0.13% to 2.16%. This period of low interest rates corresponded with the area's high and stable homeownership rates, as affordable financing options likely encouraged property purchases. The slight dip in homeownership to 87% in 2015 coincided with a minor increase in interest rates to 0.13%, while the subsequent rise to 92% ownership by 2018 occurred as rates gradually increased to 1.83%.
Renter percentages in zip code 06478 have shown an inverse relationship to homeownership rates, decreasing from 12% in 2015 to 8% in 2022. Interestingly, average rent prices have fluctuated significantly during this period. In 2015, the average rent was $509, which decreased to $190 in 2018 before rising again to $333 in 2022. This volatility in rent prices, coupled with the decreasing percentage of renters, suggests a complex rental market possibly influenced by factors such as local economic conditions and housing supply.
As of 2024, the average home price in zip code 06478 has reached $530,504, continuing the upward trend observed in previous years. This represents a 7.3% increase from the 2023 average price of $499,390. The current federal interest rate stands at 5.33%, which is significantly higher than the rates seen in the past decade. Despite this increase in interest rates, the housing market in this area appears to remain robust, with prices continuing to appreciate.
Looking ahead, predictive models suggest that the strong housing market in zip code 06478 is likely to persist. Average home prices are projected to continue their upward trajectory over the next five years, potentially reaching or exceeding $600,000 by 2029. Rent prices, while more volatile, are also expected to show a gradual increase, potentially stabilizing around $400-$450 per month. However, these projections are subject to various economic factors and market conditions.
In summary, zip code 06478 has demonstrated a resilient housing market characterized by high homeownership rates and steadily increasing average home prices. The area has maintained a strong preference for owner-occupied housing, even as property values have risen substantially. The rental market, while smaller, has shown more volatility in pricing. As the area moves forward, it appears poised for continued growth in property values, with homeownership remaining a dominant feature of the local real estate landscape.
