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Home Values and Ownership in Zip Code 11787: A Decade of Growth in Smithtown, New York
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
DATA SOURCE
United States Census Bureau: American Community Survey Data (ACS)
Zillow: Zillow Home Value Index (ZHVI)
Zip code 11787, located in Smithtown, New York, is a community characterized by high homeownership rates and steadily increasing property values. This area has maintained a strong preference for owner-occupied housing, with ownership percentages consistently hovering around 88-89% throughout the past decade.
The trend in average home prices in zip code 11787 shows a steady increase from 2010 to 2024. In 2010, the average home price was $443,690, which rose to $656,059 by 2022, representing a significant 47.9% increase over 12 years. This upward trend in home values has continued despite fluctuations in homeownership rates, which remained relatively stable between 87% and 89% from 2013 to 2022. The stability in homeownership rates, coupled with rising home prices, suggests a strong and desirable housing market in this area.
Federal interest rates have played a role in homeownership trends in zip code 11787. From 2010 to 2016, interest rates remained exceptionally low, ranging from 0.09% to 0.40%. During this period, homeownership rates in the area stayed high, between 87% and 88%. As interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, homeownership rates showed slight fluctuations but remained robust, actually increasing to 89% in 2017 and maintaining that level through 2022. This resilience in homeownership rates despite rising interest rates indicates a strong preference for homeownership in this community.
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The rental market in zip code 11787 has shown interesting trends as well. The percentage of renters has remained relatively stable, fluctuating between 11% and 12% from 2013 to 2022. However, average rent prices have seen significant increases. In 2013, the average rent was $1,472, which rose to $2,082 by 2022, marking a substantial 41.4% increase over nine years. This increase in rent prices, coupled with a steady renter population, suggests a competitive rental market despite the area's strong preference for homeownership.
Looking at the most recent data, the average home price in zip code 11787 reached $677,425 in 2023 and further increased to $715,634 in 2024. This represents a 9.1% increase from 2022 to 2024, indicating a continuation of the strong upward trend in property values. Concurrently, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024. Despite these higher interest rates, the housing market in this zip code appears to remain robust, with home prices continuing to appreciate.
Applying predictive models to forecast 5-year trends, we can expect the average home prices in zip code 11787 to continue their upward trajectory. Based on historical data and current market conditions, average home prices could potentially reach around $850,000 to $900,000 by 2029. For average rent prices, the forecast suggests a continued increase, potentially reaching $2,500 to $2,700 per month in the next five years.
In summary, zip code 11787 demonstrates a strong and stable housing market characterized by high homeownership rates, steadily increasing property values, and a competitive rental market. The area has shown resilience to fluctuations in interest rates, maintaining high homeownership levels even as rates have increased. The consistent rise in both home prices and rent prices, coupled with stable occupancy rates, indicates a desirable living location with sustained demand for both owned and rented properties.
