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Rising Home Values and Ownership Trends in Zip Code 11023: Great Neck's 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
Zip code 11023, representing Great Neck in New York, presents an intriguing case study of homeownership and real estate trends. This affluent suburban area has experienced notable fluctuations in ownership percentages and significant changes in average home and rent prices over the past decade.
From 2013 to 2022, the homeownership rate in zip code 11023 remained relatively stable, with a slight increase from 83% to 84% between 2013 and 2018. However, there was a noticeable decline to 79% by 2022. This shift coincided with substantial growth in average home prices, rising from $863,878 in 2013 to $1,242,311 in 2022, representing a 43.8% increase over nine years. The relationship between homeownership rates and average home prices appears inverse, suggesting that rising property values may have made homeownership less attainable for some residents.
The federal interest rate trends show a potential influence on homeownership rates in the area. From 2013 to 2016, when interest rates were exceptionally low (ranging from 0.11% to 0.40%), homeownership rates remained stable at around 83-84%. As interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), homeownership rates stayed high at 84%. However, the sharp drop in interest rates in 2020 (0.38%) and 2021 (0.08%) coincided with a decrease in homeownership to 78% and 77% respectively, possibly due to other economic factors at play during this period.
Renter percentages in zip code 11023 showed an inverse relationship to homeownership rates, naturally increasing as homeownership declined. The renter population grew from 16% in 2018 to 21% in 2022. Interestingly, average rent prices experienced significant volatility during this period. They peaked at $2,963 in 2016, then declined to $2,070 by 2022, a 30.1% decrease. This trend suggests that despite the increase in the renter population, other factors such as local market conditions or increased rental supply may have influenced the downward pressure on rent prices.
As of 2024, the average home price in zip code 11023 has risen to $1,346,908, representing an 8.4% increase from 2022. This increase has occurred despite the federal interest rate climbing to 5.33% in 2024, which typically would be expected to slow home price growth. The 2023 average home price was $1,276,126, showing a steady upward trend in property values in this area.
Looking ahead, based on historical trends and current market conditions, we can project that average home prices in zip code 11023 may continue to rise over the next five years, potentially reaching around $1,550,000 by 2029. This projection assumes a moderate annual growth rate of approximately 3%, considering the area's desirability and historical price appreciation. For rent prices, if the current trend of stabilization continues, we might see average rents hovering around $2,200 to $2,400 per month over the next five years, with potential for slight increases depending on demand and overall economic conditions.
In summary, zip code 11023 has demonstrated resilience in its real estate market, with consistently high homeownership rates despite rising property values. The inverse relationship between homeownership and average home prices, coupled with the fluctuating rental market, paints a picture of a dynamic and evolving real estate landscape in this New York suburb. The area's ability to maintain high property values, even in the face of rising interest rates, suggests a strong underlying demand for housing in this desirable location.
