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Home Values and Ownership Trends in Zip Code 11770: Fire Island's Coastal Real Estate Dynamics
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
Fire Island, located in zip code 11770 in New York, is a unique coastal community known for its beautiful beaches and car-free environment. This area has experienced fluctuating homeownership rates and significant changes in average home prices over the past decade, while average rent prices have shown more modest variations.
The ownership percentage in Fire Island has seen notable changes from 2013 to 2022. In 2013, the homeownership rate was 88%, which increased to 91% in 2019, marking the highest point in the observed period. However, by 2022, this rate had decreased to 74%. Concurrently, average home prices have shown a substantial upward trend. In 2012, the average home price was $584,497, which steadily increased to $1,012,804 by 2022, representing a 73% increase over this period. This trend suggests that while home values have risen significantly, it has become more challenging for residents to maintain homeownership in recent years.
Federal interest rates have played a role in homeownership trends in Fire Island. From 2013 to 2016, when interest rates were exceptionally low (ranging from 0.11% to 0.40%), homeownership rates remained high, between 82% and 89%. As interest rates began to rise more steeply from 2017 (1%) to 2019 (2.16%), homeownership initially remained high but then started to decline. The sharp drop in interest rates in 2020 (0.38%) and 2021 (0.08%) coincided with a slight rebound in homeownership to 84% in 2020, but this was not sustained as rates began to rise again in 2022.
Renter percentages in Fire Island have shown an inverse relationship to homeownership rates, naturally increasing as homeownership decreased. The renter population rose from 9% in 2013 to 26% in 2022. Average rent prices have fluctuated over this period, with notable changes. In 2013, the average rent was $2,250, which decreased to $1,432 in 2014. Rent prices then showed an upward trend, reaching $1,878 in 2017, before declining again to $1,293 in 2022. These fluctuations in rent prices don't show a clear correlation with the increasing renter population, suggesting that other factors, such as seasonal demand in this coastal community, may influence rental rates.
In 2023, the average home price in Fire Island reached $1,105,346, continuing the upward trend observed in previous years. This increase occurred despite a significant rise in federal interest rates to 5.02% in 2023. Moving into 2024, the average home price has further increased to $1,220,470, with interest rates slightly higher at 5.33%. This persistent growth in home values, even in the face of higher interest rates, indicates strong demand for property in this desirable coastal location.
Looking ahead, based on the observed trends, it's projected that average home prices in Fire Island will continue to rise over the next five years, potentially reaching around $1.5 million by 2029. However, this growth rate may moderate due to the current high interest rate environment. Average rent prices are expected to stabilize and potentially increase moderately, possibly reaching around $1,800-$2,000 per month by 2029, as demand for rental properties in this scenic area remains steady.
In summary, Fire Island has experienced a significant increase in average home prices over the past decade, coupled with a recent decline in homeownership rates. The rental market has seen more fluctuations, with an increasing renter population but variable rent prices. The continued rise in home values, even amidst higher interest rates, underscores the enduring appeal of this unique coastal community.
