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Rising Home Values and Shifting Ownership in Brooklyn's Zip Code 11225: A Decade of Change Near Prospect Park
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 11225, located in Brooklyn, New York, encompasses a diverse urban area known for its vibrant community and cultural attractions. Over the past decade, this neighborhood has experienced significant changes in homeownership rates, average home prices, and average rent prices, reflecting broader trends in the New York City real estate market.
The homeownership rate in zip code 11225 has shown a gradual increase from 14% in 2013 to 18% in 2022. This upward trend coincides with a substantial rise in average home prices, which grew from $496,164 in 2010 to $1,014,151 in 2022, representing a 104% increase over 12 years. The relationship between homeownership rates and average home prices suggests that despite the rising costs, more residents have been able to enter the housing market.
Federal interest rates have played a significant role in shaping homeownership trends in the area. The period from 2010 to 2016 saw historically low interest rates, ranging from 0.09% to 0.40%, which likely contributed to the gradual increase in homeownership. As interest rates began to rise from 2017 to 2019, reaching 2.16% in 2019, the homeownership rate continued to climb, suggesting other factors such as local economic conditions and housing policies may have also influenced this trend.
Renter percentages in zip code 11225 have slightly decreased from 85% in 2013 to 82% in 2022, inversely mirroring the rise in homeownership. During this period, average rent prices experienced a steady increase, rising from $1,222 in 2013 to $1,490 in 2022, a 22% increase over nine years. The population in the area fluctuated during this time, peaking at 62,837 in 2016 before declining to 59,033 in 2022, which may have influenced rental market dynamics.
In 2023 and 2024, the real estate market in zip code 11225 has shown signs of adjustment. The average home price decreased to $929,117 in 2023 and further to $919,938 in 2024, representing a 9.3% decline from 2022 levels. This downturn coincides with a significant increase in federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024, potentially impacting homebuying affordability and market demand.
Looking ahead, predictive models suggest a potential stabilization in the housing market for zip code 11225 over the next five years. Average home prices are forecasted to experience modest growth, potentially reaching around $950,000 to $975,000 by 2029. Average rent prices are expected to continue their upward trajectory, albeit at a slower pace, potentially reaching $1,650 to $1,700 by 2029.
In summary, zip code 11225 has witnessed a gradual increase in homeownership rates despite rising home prices over the past decade. The rental market has remained dominant but has seen a slight decrease in the percentage of renters while average rents have steadily increased. Recent market adjustments and higher interest rates have led to a cooling in home prices, but long-term trends suggest continued, though more moderate, growth in both the housing and rental markets.
