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Rising Home Values and Stable Ownership in Bronx Zip Code 10456: A Decade of Change
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 10456, located in the Bronx, New York, is a densely populated urban area characterized by a predominantly renter-occupied housing market. This zip code has experienced significant changes in its real estate landscape over the past decade, with notable trends in homeownership rates, average home prices, and average rent prices.
The ownership percentage in zip code 10456 has shown a slight upward trend, increasing from 6% in 2013 to 8% in 2022. This modest growth in homeownership coincides with a substantial increase in average home prices. In 2013, the average home price was $231,667, which rose dramatically to $429,286 by 2022, representing an 85% increase over nine years. This trend suggests that while home values have appreciated significantly, it has not translated into a proportional increase in homeownership rates, possibly due to affordability challenges for many residents.
The relationship between federal interest rates and homeownership rates in this zip code appears to be somewhat complex. Despite historically low interest rates from 2013 to 2021, ranging from 0.08% to 1.83%, the homeownership rate only increased by 2 percentage points. This suggests that other factors, such as high home prices or local economic conditions, may have a stronger influence on homeownership in this area than interest rates alone.
Renter occupancy in zip code 10456 has remained consistently high, decreasing only slightly from 93% in 2013 to 92% in 2022. During this period, average rent prices have shown a steady upward trend. In 2013, the average rent was $951, which increased to $1,058 by 2022, representing an 11.3% rise. The population in the zip code has also fluctuated, peaking at 94,129 in 2017 before declining to 89,271 in 2022. The high renter occupancy rate, coupled with rising rent prices, indicates a strong demand for rental properties in the area, possibly driven by the area's urban location and the challenges of homeownership for many residents.
In 2023 and 2024, the real estate market in zip code 10456 has shown some interesting developments. The average home price decreased to $400,389 in 2023, a 6.7% drop from 2022. However, there was a slight uptick to $400,667 in 2024, indicating a potential stabilization in the market. These changes occurred against the backdrop of significantly higher federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024. These higher rates may have contributed to the initial cooling of home prices in 2023.
Looking ahead, the 5-year forecast for average home prices in zip code 10456 suggests a potential for moderate growth. Based on historical trends and current market conditions, average home prices could reach approximately $450,000 by 2029. For average rent prices, the forecast indicates a continued upward trajectory, potentially reaching around $1,200 by 2029. These predictions take into account the area's consistent demand for rental properties and the historical appreciation of home values.
In summary, zip code 10456 in the Bronx presents a real estate market dominated by renters, with a small but growing percentage of homeowners. The area has seen substantial appreciation in home values over the past decade, coupled with steady increases in rent prices. Despite these trends, the high renter occupancy rate has persisted, suggesting ongoing affordability challenges for potential homebuyers. The recent stabilization of home prices and the impact of higher interest rates will likely play crucial roles in shaping the area's real estate landscape in the coming years.
