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Home Values and Ownership in Zip Code 11230: A Decade of Change in Brooklyn's Urban Landscape
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 11230, located in Brooklyn, New York, is a vibrant and diverse area characterized by its dynamic real estate market. Over the past decade, this neighborhood has experienced notable shifts in homeownership rates and housing prices, reflecting broader economic trends and local market conditions. The homeownership rate in zip code 11230 has shown a slight upward trend, increasing from 30% in 2015 to 32% in 2022. This modest growth in homeownership coincides with a significant rise in average home prices. In 2010, the average home price in the area was $554,663, which steadily increased to reach $945,964 by 2022, representing a substantial 70.5% increase over 12 years. The peak of average home prices was observed in 2019 at $1,025,912, after which there was a slight decline.
Federal interest rates have played a crucial role in shaping homeownership trends in zip code 11230. The period from 2010 to 2016 saw historically low interest rates, ranging from 0.09% to 0.40%. During this time, homeownership rates remained relatively stable around 30-31%. As interest rates began to rise from 2017 (1%) to 2019 (2.16%), there was a slight increase in homeownership to 33% by 2020. This suggests that despite rising interest rates, other factors such as strong economic conditions and appreciation of property values might have encouraged home buying in the area.
Renter occupancy in zip code 11230 has remained the dominant housing arrangement, albeit with a slight decrease from 70% in 2015 to 68% in 2022. This high percentage of renters is typical for urban areas in New York City. Average rent prices have shown a consistent upward trend, increasing from $1,307 in 2013 to $1,477 in 2022, a 13% increase over nine years. The population in the zip code has fluctuated, reaching a peak of 82,927 in 2021, which may have contributed to the pressure on rental prices.
In 2023 and 2024, we observe a significant shift in the housing market of zip code 11230. Average home prices decreased to $805,762 in 2023 and further to $778,591 in 2024, marking a substantial 17.7% decline from 2022 to 2024. This downturn coincides with a sharp increase in federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024. These higher interest rates likely contributed to the cooling of the housing market in the area.
Looking ahead, predictive models suggest that average home prices in zip code 11230 may continue to face downward pressure in the short term due to high interest rates. However, given the area's desirability and historical resilience, a gradual recovery and stabilization are anticipated over the next five years. Rent prices are expected to remain relatively stable or see modest increases, driven by the consistently high demand for rental properties in the area.
In summary, zip code 11230 has demonstrated a complex interplay between homeownership rates, housing prices, and rental market dynamics. The recent decline in average home prices, coupled with rising interest rates, marks a significant shift in the local real estate landscape. Despite these challenges, the area's strong rental market and historical price appreciation suggest a resilient and adaptable housing market in the coming years.
