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Rising Home Values and Shifting Ownership in Burke, NY: A Decade of Housing Market 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
Burke, located in New York state, is a small community with a population of 1,247 as of 2022. The village has experienced fluctuations in homeownership rates and rental prices over the past decade, reflecting broader economic trends and local market dynamics.
The homeownership rate in Burke has shown a general decline from 2013 to 2021, before seeing a slight uptick in 2022. In 2013, the homeownership rate stood at 89%, gradually decreasing to 78% by 2021. However, in 2022, there was a modest increase to 82%. This trend suggests a shifting landscape in the local housing market, with more residents transitioning to renting before a recent reversal.
Average rent prices in Burke have displayed a fluctuating pattern. In 2013, the average rent was $821, which decreased to $729 by 2018, representing an 11.2% drop. However, from 2018 to 2022, there was a significant upward trend, with average rent rising to $878, marking a 20.4% increase over this four-year period. This recent surge in rental prices could be attributed to various factors, including increased demand for rental properties or improvements in local amenities and infrastructure.
The relationship between federal interest rates and homeownership rates in Burke aligns with well-established trends. As interest rates remained low from 2013 to 2020, ranging from 0.08% to 0.4%, the homeownership rate in Burke experienced a gradual decline. This counterintuitive trend might be explained by other local economic factors outweighing the potential benefits of low interest rates. However, as interest rates began to rise more significantly in 2022 to 1.68%, we saw a slight increase in homeownership, possibly due to residents rushing to purchase homes before rates climbed further.
The renter percentage in Burke has shown an inverse relationship to homeownership rates, increasing from 11% in 2013 to 22% in 2021, before decreasing slightly to 18% in 2022. This trend correlates with the fluctuations in average rent prices, suggesting that as more residents shifted to renting, landlords responded by adjusting rental rates to match demand.
In 2023 and 2024, Burke has seen significant changes in its housing market. The average home price in 2024 is $193,130, indicating a substantial increase from previous years. This rise in home values coincides with elevated federal interest rates, which stand at 5.33% in 2024, up from 5.02% in 2023. These figures reflect a robust housing market despite higher borrowing costs.
Looking ahead, predictive models suggest that average home prices in Burke may continue to rise over the next five years, albeit at a potentially slower pace due to the current high interest rates. Rent prices are also expected to increase, driven by ongoing demand for rental properties and the overall appreciation of real estate in the area.
In summary, Burke has experienced a dynamic housing market over the past decade, with shifting homeownership rates, fluctuating rent prices, and a recent surge in home values. The interplay between federal interest rates, local economic conditions, and housing preferences has shaped these trends. As the village moves forward, it is likely to see continued growth in both home values and rental rates, reflecting its evolving status as a residential community in New York state.
