As homeownership rates declined, the percentage of renters in zip code 06417 increased from 17% in 2013 to 35% in 2022. This shift coincided with a dramatic rise in average rent prices. In 2013, the average rent was $473, but by 2022, it had more than doubled to $1,023, representing a 116.3% increase. The population in this zip code decreased slightly from 4,537 in 2013 to 4,367 in 2022, suggesting that the rising rent prices were not driven by increased housing demand due to population growth.

In 2023 and 2024, the housing market in zip code 06417 continued its upward trajectory. The average home price reached $361,197 in 2023 and further increased to $387,511 in 2024, representing a 7.7% year-over-year increase. Concurrently, federal interest rates rose to 5.02% in 2023 and 5.33% in 2024, potentially impacting homeownership affordability.

Looking ahead, predictive models suggest that average home prices in zip code 06417 may continue to rise over the next five years, potentially reaching around $450,000 by 2029 if current trends persist. Average rent prices are also projected to increase, potentially surpassing $1,300 per month within the same timeframe.

In summary, zip code 06417 has experienced a significant shift from homeownership to renting, with a 18 percentage point decrease in homeownership rates from 2013 to 2022. This trend has been accompanied by substantial increases in both average home prices (48.9% increase from 2012 to 2022) and average rent prices (116.3% increase from 2013 to 2022). The rise in federal interest rates appears to have influenced this trend, potentially making homeownership less accessible. As we move forward, the housing market in this area is expected to continue its upward price trajectory for both homeowners and renters.