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Rising Home Values and Ownership in Zip Code 13073: Groton's Dynamic Housing 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 13073, located in Groton, New York, has experienced notable shifts in homeownership rates and property values over the past decade. This area, covering 52.52 square miles, has seen a general trend of increasing homeownership and rising average home prices, alongside fluctuating average rent costs.
The ownership percentage in zip code 13073 has shown a significant upward trend, rising from 73% in 2013 to 76% in 2022. This increase in homeownership coincides with a substantial rise in average home prices. In 2013, the average home price was $130,649, which steadily increased to $204,135 by 2022, representing a 56% increase over nine years. This correlation suggests that despite rising home prices, more residents in the area were able to transition into homeownership.
Federal interest rates have played a crucial role in shaping homeownership trends in zip code 13073. The period from 2013 to 2016 saw historically low interest rates, ranging from 0.11% to 0.4%. During this time, homeownership rates remained stable at around 72-73%. As interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), we observed a concurrent increase in homeownership rates, reaching 79% by 2019. This counterintuitive trend might be attributed to residents rushing to purchase homes before rates potentially increased further.
The renter percentage in zip code 13073 has generally decreased, moving from 27% in 2013 to 24% in 2022. Interestingly, average rent prices have shown a consistent upward trend during this period. In 2013, the average rent was $854, which increased to $1,168 by 2022, a 37% rise. This increase in rent prices, coupled with the decrease in the proportion of renters, suggests that rising rent costs may have incentivized more residents to pursue homeownership.
Looking at the most recent data, the average home price in zip code 13073 reached $211,238 in 2023 and further increased to $219,102 in 2024. This represents a 7.3% increase from 2022 to 2024. Concurrently, federal interest rates have risen sharply, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homeownership trends in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 13073 will continue to rise, potentially reaching around $250,000 by 2029. This projection is based on the consistent upward trend observed over the past decade. Average rent prices are also expected to increase, potentially surpassing $1,300 per month within the next five years, following the established trend of rising rental costs in the area.
In summary, zip code 13073 has demonstrated a strong trend towards increased homeownership, with a concurrent rise in both average home prices and average rent costs. The area has shown resilience in maintaining high homeownership rates despite rising property values, suggesting a robust local housing market. The interplay between federal interest rates, homeownership rates, and property values will continue to shape the housing landscape in this New York community in the coming years.
