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Home Values and Ownership in Zip Code 13626: A Decade of Change in Rural New York
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
Copenhagen, located in zip code 13626 in New York, has experienced notable shifts in homeownership rates and housing prices over the past decade. This rural area has seen fluctuations in its population and housing market, reflecting broader economic trends and local dynamics.
The homeownership rate in zip code 13626 has shown a U-shaped trend, decreasing from 84% in 2013 to a low of 74% in 2016, before rebounding to 82% in 2022. This pattern coincides with changes in average home prices, which have steadily increased from $106,847 in 2010 to $174,901 in 2022, representing a 63.7% increase over 12 years. The relationship between homeownership rates and average home prices suggests that as prices initially rose, some residents may have found it more challenging to enter the housing market. However, the recent uptick in homeownership despite rising prices could indicate improved economic conditions or changing demographics in the area.
Federal interest rates have played a significant role in shaping homeownership trends in zip code 13626. The period of historically low interest rates from 2010 to 2015, ranging from 0.09% to 0.18%, coincided with the initial decline in homeownership rates. Counterintuitively, this suggests that other local factors may have outweighed the potential benefits of low borrowing costs. As interest rates began to rise gradually from 2016 onwards, reaching 1.68% in 2022, homeownership rates in the area also increased. This trend might be attributed to residents rushing to purchase homes before rates climbed further, or to overall economic improvements in the region.
Renter percentages in zip code 13626 have mirrored the inverse of homeownership trends, peaking at 26% in 2016 before declining to 18% in 2022. Interestingly, average rent prices have shown a consistent downward trend, falling from $1,136 in 2013 to $677 in 2022, a decrease of 40.4%. This decline in rent prices, coupled with the area's growing population from 2,276 in 2010 to 2,677 in 2022, suggests a potential oversupply of rental properties or changing housing preferences in the community.
In 2023 and 2024, average home prices in zip code 13626 continued their upward trajectory, reaching $181,965 in 2023 and $190,240 in 2024. This represents a further 8.8% increase from 2022 to 2024. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, marking a substantial increase from the previous years. These higher interest rates may impact future homeownership trends and affordability in the area.
Looking ahead, predictive models suggest that average home prices in zip code 13626 are likely to continue their upward trend over the next five years, potentially reaching around $220,000 by 2029. However, the rate of increase may slow due to higher interest rates. Average rent prices, which have been declining, may stabilize or see a modest increase, potentially reaching around $700 per month by 2029, as the market adjusts to changing demand and supply dynamics.
In summary, zip code 13626 has experienced a resurgence in homeownership rates despite rising home prices, while rental prices have decreased. The interplay between federal interest rates, local economic conditions, and housing market dynamics has shaped these trends. As the area continues to evolve, the housing market in Copenhagen is likely to remain dynamic, with potential for further growth in home values and a stabilization of rental prices.
