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Rising Home Values and Ownership in Brooklyn's Zip Code 11205: A Resilient Real Estate Market
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 11205, located in Brooklyn, New York, has experienced significant changes in its real estate landscape over the past decade. This area has seen a gradual increase in homeownership rates alongside fluctuating average home prices and rising average rent prices, reflecting the dynamic nature of Brooklyn's housing market.
The homeownership rate in zip code 11205 has shown a steady upward trend, increasing from 25% in 2013 to 30% in 2022. This growth in homeownership coincides with a substantial rise in average home prices. In 2013, the average home price was $505,824, which increased dramatically to $879,011 by 2022, representing a 73.8% increase over nine years. This trend suggests a strong correlation between rising property values and increasing homeownership rates in the area.
Federal interest rates have played a crucial role in shaping homeownership trends. From 2013 to 2016, when interest rates were historically low (ranging from 0.11% to 0.40%), homeownership rates remained relatively stable at around 25%. However, as interest rates began to rise from 2017 (1%) to 2019 (2.16%), homeownership rates also increased, reaching 28% by 2019. This counterintuitive trend might be attributed to other factors such as local economic growth or changing demographics in the area.
Renter percentages in zip code 11205 have gradually decreased from 75% in 2013 to 70% in 2022, mirroring the increase in homeownership. During this period, average rent prices rose significantly, from $1,373 in 2013 to $1,733 in 2022, a 26.2% increase. The population also grew from 45,048 in 2013 to 51,176 in 2022, potentially contributing to the upward pressure on rent prices despite the slight decrease in the percentage of renters.
In 2023 and 2024, the housing market in zip code 11205 showed signs of stabilization. The average home price in 2023 was $836,911, a slight decrease from 2022, but rebounded to $860,029 in 2024. This recovery occurred despite high federal interest rates of 5.02% in 2023 and 5.33% in 2024, indicating resilience in the local housing market.
Looking ahead, predictive models suggest that average home prices in zip code 11205 may continue to rise moderately over the next five years, potentially reaching around $950,000 by 2029. Average rent prices are also expected to increase, possibly surpassing $2,000 per month within the same timeframe. These projections are based on historical trends and current market conditions.
In summary, zip code 11205 has experienced a notable increase in homeownership rates and property values over the past decade. The area has shown resilience to fluctuating interest rates, with both home prices and rent prices demonstrating an overall upward trend. The continued population growth and the balance between homeowners and renters suggest a dynamic and competitive real estate market in this Brooklyn neighborhood for the foreseeable future.
