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Rising Home Values and Shifting Ownership in Zip Code 14303: Niagara Falls' Evolving 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 14303, located in Niagara Falls, New York, has experienced notable changes in its housing market over the past decade. This area, known for its proximity to the world-famous Niagara Falls, has seen fluctuations in homeownership rates and significant increases in average home and rent prices. The overall trend indicates a slight decrease in homeownership, while average home prices have increased substantially, and average rent prices have shown moderate growth.
The relationship between homeownership rates and average home prices in zip code 14303 reveals an interesting dynamic. In 2013, the homeownership rate stood at 50%, with an average home price of $36,505. As average home prices steadily increased, reaching $91,134 in 2022, the homeownership rate declined to 45%. This inverse relationship suggests that rising home prices may have made it more challenging for residents to afford homeownership. The most dramatic increase in average home prices occurred between 2020 and 2022, jumping from $59,119 to $91,134, representing a 54% increase in just two years.
Federal interest rates have played a role in homeownership trends in zip code 14303. From 2013 to 2016, when interest rates were historically low (ranging from 0.11% to 0.4%), homeownership rates remained relatively stable around 43-46%. As interest rates began to rise in 2017 (1%) and 2018 (1.83%), homeownership rates held steady at 43%. However, the sharp increase in interest rates in 2022 (1.68%) and 2023 (5.02%) coincided with a slight decrease in homeownership to 45% in 2022, suggesting that higher borrowing costs may have impacted some residents' ability to purchase homes.
Renter percentages and average rent prices have shown a generally upward trend. In 2013, the renter-occupied percentage was 50%, with an average rent of $617. By 2022, the renter percentage had increased to 55%, while the average rent rose to $691. The highest renter percentage was observed in 2019 at 61%, corresponding with an average rent of $691. The population fluctuations in the zip code, ranging from a low of 5,668 in 2019 to a high of 6,255 in 2014, may have influenced the rental market dynamics, with periods of higher population potentially increasing demand for rental properties.
In 2023 and 2024, average home prices in zip code 14303 continued to rise, reaching $93,875 in 2023 and $100,356 in 2024. This represents a 10.1% increase from 2022 to 2024. Concurrently, federal interest rates climbed to 5.02% in 2023 and 5.33% in 2024, potentially impacting homebuying affordability in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 14303 will continue to increase, potentially reaching around $120,000 by 2029. This projection is based on the consistent upward trend observed over the past decade. For average rent prices, we expect a more moderate increase, potentially reaching approximately $750-$800 per month by 2029, assuming the current growth rate continues.
In summary, zip code 14303 has experienced a gradual shift towards renting, with homeownership rates declining slightly as average home prices have significantly increased. The rental market has seen steady growth in both occupancy and prices. The recent sharp rises in home prices and interest rates may continue to influence the housing market dynamics in this area, potentially favoring the rental market in the short term. However, the long-term trend suggests continued appreciation in both home values and rental prices, reflecting the evolving real estate landscape in this Niagara Falls neighborhood.
