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Rising Home Values and Stable Ownership: A Decade of Change in Utica's 13502 Zip Code
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 13502, located in Utica, New York, presents an intriguing case study of housing trends over the past decade. This area has experienced fluctuations in homeownership rates, average home prices, and average rent prices, reflecting broader economic and demographic shifts in the region.
The homeownership rate in zip code 13502 has remained relatively stable, hovering around 58-61% between 2013 and 2022. However, this stability masks some interesting year-to-year variations. For instance, the ownership percentage peaked at 61% in 2020 before declining to 58% in 2022. Simultaneously, average home prices in the area have shown a consistent upward trend. In 2013, the average home price was $87,143, which steadily increased to $162,140 by 2022, representing an impressive 86% growth over this period. This substantial appreciation in home values, particularly the sharp rise from $123,829 in 2020 to $162,140 in 2022, a 31% increase in just two years, suggests a robust housing market despite the slight decline in homeownership rates.
Federal interest rates have played a significant role in shaping homeownership trends in zip code 13502. The period from 2013 to 2020 saw historically low interest rates, ranging from 0.09% to 0.38%. These low rates likely contributed to the relative stability in homeownership rates during this time, as they made mortgages more affordable for potential buyers. The slight increase in homeownership to 61% in 2020 coincides with the interest rate dropping to 0.38% from 2.16% in 2019, potentially encouraging more buyers to enter the market.
Renter percentages in zip code 13502 have fluctuated inversely to homeownership rates, ranging from 39% to 42% between 2013 and 2022. Interestingly, average rent prices have shown a general upward trend during this period, albeit with some fluctuations. In 2013, the average rent was $833, which increased to $923 by 2022, representing a 10.8% rise. Notable spikes in average rent occurred in 2018 ($869) and 2021 ($949), possibly reflecting periods of increased demand for rental properties. The population in the zip code has also seen variations, decreasing from 31,533 in 2013 to a low of 29,898 in 2017, before rebounding to 32,465 in 2022. This population growth in recent years may have contributed to the upward pressure on both home prices and rents.
Looking at the most recent data, average home prices in zip code 13502 continued their upward trajectory, reaching $170,454 in 2023 and further increasing to $178,190 in 2024. This represents a 9.9% increase from 2022 to 2024. Concurrently, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates could potentially impact future homeownership rates and home price growth in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 13502 will continue to rise, albeit potentially at a slower rate due to higher interest rates. By 2029, average home prices could reach approximately $210,000 to $220,000, assuming a more moderate annual growth rate of 3-4%. Average rent prices are also expected to increase, potentially reaching $1,050 to $1,100 by 2029, reflecting continued demand for rental properties and overall inflationary pressures.
In summary, zip code 13502 in Utica has demonstrated resilience in its housing market, with steadily increasing home values despite fluctuations in homeownership rates. The area has seen significant appreciation in average home prices, particularly in recent years, while maintaining a relatively stable balance between owners and renters. The interplay between federal interest rates, population changes, and housing demand has shaped these trends, with recent increases in interest rates potentially influencing future market dynamics. As the area continues to evolve, it will be crucial to monitor how these factors interact to shape the local housing landscape in the coming years.
