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Rising Home Values and Ownership Trends in Zip Code 14818: A Rural New York Case Study
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 14818, located in Burdett, New York, presents an intriguing case study of homeownership and housing market dynamics. This rural area has experienced significant fluctuations in its ownership rates and housing prices over the past decade, reflecting broader economic trends and local market conditions.
The homeownership rate in zip code 14818 has shown a general declining trend from 2013 to 2019, before rebounding in recent years. In 2013, the area boasted an impressive 89% homeownership rate. However, this figure dropped to 76% by 2019, representing a substantial 13 percentage point decrease. Interestingly, this decline coincided with a period of steadily increasing average home prices. From 2013 to 2019, average home prices in the area rose from $144,534 to $182,986, an increase of approximately 26.6%. This inverse relationship suggests that rising home prices may have made homeownership less attainable for some residents during this period.
Federal interest rates play a crucial role in homeownership trends, and the data for zip code 14818 reflects this relationship. The period from 2013 to 2015 saw historically low interest rates, hovering around 0.1-0.13%. During this time, homeownership rates remained relatively high, above 84%. As interest rates began to rise more significantly from 2016 onwards, reaching 2.16% by 2019, we observe a corresponding decline in homeownership rates to 76%. However, the sharp drop in interest rates in 2020 and 2021 (to 0.38% and 0.08% respectively) coincides with a rebound in homeownership to 82% and 83% in those years.
Renter percentages and average rent prices in zip code 14818 have shown interesting trends as well. As homeownership declined from 2013 to 2019, the percentage of renters increased from 11% to 24%. During this period, average rent prices fluctuated but generally trended upward, rising from $849 in 2013 to $940 in 2019, an increase of about 10.7%. The population during this time remained relatively stable, ranging from 1,884 to 2,074 residents, suggesting that the increase in renters was likely due to shifts from homeownership rather than significant population growth.
In 2023 and 2024, we see a continuation of the upward trend in average home prices in zip code 14818. The average home price reached $260,946 in 2023 and further increased to $270,113 in 2024, representing a substantial rise from previous years. This growth occurs against a backdrop of higher interest rates, with federal rates at 5.02% in 2023 and 5.33% in 2024, which are significantly higher than the near-zero rates seen in the early 2020s.
Looking ahead, predictive models suggest that average home prices in zip code 14818 are likely to continue their upward trajectory over the next five years, albeit potentially at a more moderate pace due to the higher interest rate environment. Average rent prices are also expected to increase, driven by the area's relatively low vacancy rates and the ongoing balance between homeownership and renting trends.
In summary, zip code 14818 has experienced significant shifts in homeownership rates, closely tied to changes in average home prices and federal interest rates. The area has seen a recent rebound in homeownership after a period of decline, while both home prices and rent prices have generally trended upward. These trends reflect the complex interplay between economic factors, housing affordability, and local market conditions in this New York village.
