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Rising Home Values and Ownership Trends in Zip Code 14223: Tonawanda Town'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 14223, located in Tonawanda Town, New York, presents an intriguing landscape of homeownership and rental trends over the past decade. This area has experienced notable shifts in both ownership percentages and housing prices, reflecting broader economic changes and local market dynamics.
The homeownership rate in zip code 14223 has shown remarkable stability with a slight upward trend from 2013 to 2019, peaking at 82% in 2019. However, there has been a gradual decline since then, settling at 76% in 2022. Concurrently, average home prices have demonstrated a consistent upward trajectory. In 2013, the average home price was $116,619, which steadily increased to $221,474 by 2022, representing a substantial 90% growth over this period.
The relationship between federal interest rates and homeownership rates in this zip code presents an interesting case. Despite the historically low interest rates from 2013 to 2016 (ranging from 0.09% to 0.40%), homeownership rates remained relatively stable, hovering around 78-79%. Interestingly, as interest rates began to rise from 2017 (1%) to 2019 (2.16%), homeownership actually increased to its peak of 82% in 2019. This suggests that factors beyond interest rates, such as local economic conditions or housing supply, may have played a significant role in homeownership decisions in this area.
Renter percentages in zip code 14223 have fluctuated inversely to homeownership rates, ranging from a low of 18% in 2019 to a high of 24% in 2022. Average rent prices have shown a general upward trend, albeit with some volatility. In 2013, the average rent was $774, which increased to $961 by 2019, representing a 24% increase. However, there was a notable spike in 2021 when average rent reached $1,068, before decreasing to $867 in 2022. This volatility in rent prices could be attributed to various factors, including changes in local housing demand, economic conditions, or shifts in the rental market due to the global pandemic.
Looking at the most recent data, average home prices in zip code 14223 continued their upward trend, reaching $232,891 in 2023 and further increasing to $244,020 in 2024. This represents a 5% year-over-year increase from 2023 to 2024. Notably, federal interest rates have also risen significantly, reaching 5.02% in 2023 and 5.33% in 2024, which could potentially impact future homeownership trends and housing affordability in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 14223 will continue to rise, potentially reaching around $300,000 by 2029. This projection is based on the consistent upward trend observed over the past decade and assumes similar market conditions persist. For rent prices, the forecast suggests a more moderate increase, potentially reaching an average of $1,100 to $1,200 per month by 2029, accounting for the historical volatility and recent trends in the rental market.
In summary, zip code 14223 has demonstrated a resilient housing market with steadily increasing home values and a generally stable, high rate of homeownership. The area has weathered significant economic changes, including fluctuations in interest rates and rent prices. The recent uptick in both home prices and interest rates suggests a dynamic market that will likely continue to evolve, potentially presenting both opportunities and challenges for homeowners and renters alike in the coming years.
