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Rising Home Values and Ownership in Zip Code 13424: Oriskany's Resilient 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 13424, located in Oriskany, New York, presents an interesting case study in homeownership and housing market trends. This area has experienced significant shifts in both ownership rates and housing prices over the past decade, reflecting broader economic changes and local market dynamics. The homeownership rate in zip code 13424 has shown a notable increase in recent years. In 2016, the ownership rate stood at 73%, but by 2022, it had risen to 86%, marking a substantial 13 percentage point increase. This upward trend in homeownership coincided with a steady rise in average home prices. In 2016, the average home price was $118,525, and by 2022, it had climbed to $195,291, representing a 64.8% increase over six years.
The relationship between federal interest rates and homeownership rates in this area is particularly noteworthy. From 2016 to 2020, as interest rates remained relatively low, hovering between 0.4% and 2.16%, the homeownership rate increased from 73% to 81%. This aligns with the general trend of lower interest rates encouraging homeownership due to more affordable financing options. However, it's interesting to note that even as interest rates began to rise sharply in 2022 to 1.68%, the homeownership rate continued to climb, reaching 86%.
Conversely, the renter population in zip code 13424 has decreased over time. In 2016, renters made up 26% of the population, but by 2022, this figure had dropped to 14%. Despite this decrease in the renter population, average rent prices have shown some volatility. In 2016, the average rent was $853, which increased to $929 in 2017 before declining to $821 in 2020. By 2022, the average rent had risen again to $853, returning to the 2016 level. This fluctuation in rent prices, despite a decreasing renter population, could be attributed to various factors including changes in housing quality or local economic conditions.
Looking at the most recent data, the average home price in zip code 13424 continued its upward trajectory, reaching $204,670 in 2023 and further increasing to $216,654 in 2024. This represents a 10.9% increase from 2022 to 2024. Simultaneously, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024, which marks the highest rates in over a decade.
Applying predictive models to forecast 5-year trends, we can anticipate continued growth in average home prices in zip code 13424. Based on the historical data and current market conditions, average home prices could potentially reach around $250,000 by 2029. Rent prices, while more volatile, may also see a moderate increase, potentially reaching an average of $900-$950 per month in the same timeframe.
In summary, zip code 13424 has experienced a significant increase in homeownership rates alongside rising home prices over the past decade. Despite recent sharp increases in interest rates, the area has maintained a strong trend towards homeownership. The rental market, while smaller, has shown resilience with rent prices returning to previous levels after some fluctuation. As we look to the future, the area seems poised for continued growth in both home values and rental prices, reflecting its evolving housing market dynamics.
