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Rising Home Values and Stable Ownership in Brooklyn's Zip Code 11223: A Decade of Real Estate Trends
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 11223, located in Brooklyn, New York, is a vibrant urban area that has experienced significant changes in its real estate landscape over the past decade. This analysis explores the trends in homeownership rates, average home prices, and average rent prices in this densely populated neighborhood.
The homeownership rate in zip code 11223 has remained relatively stable, with slight fluctuations between 35% and 38% from 2013 to 2022. Despite this stability, average home prices have shown a substantial upward trend. In 2010, the average home price was $514,720, which steadily increased to $978,720 by 2022, representing a remarkable 90% increase over 12 years. This trend suggests that while the proportion of homeowners has remained consistent, the value of owned properties has significantly appreciated.
The relationship between federal interest rates and homeownership rates in this zip code appears to be less pronounced than typically observed. Despite historically low interest rates between 2010 and 2021 (ranging from 0.08% to 2.16%), the homeownership rate did not see a significant increase. This could indicate that other factors, such as the high cost of housing in Brooklyn, may have a stronger influence on homeownership decisions in this area than interest rates alone.
Renter percentages in zip code 11223 have shown a slight increase, from 62% in 2013 to 63% in 2022. Concurrently, average rent prices have risen steadily. In 2013, the average rent was $1,196, which increased to $1,374 by 2022, a 15% rise over nine years. This upward trend in rent prices, coupled with the growing renter population (from 49,023 in 2013 to 54,055 in 2022), suggests a strong demand for rental properties in the area.
Looking at the most recent data, the average home price in zip code 11223 reached $979,273 in 2023 and further increased to $987,106 in 2024. This continued appreciation occurs despite the significant rise in federal interest rates, which stood at 5.02% in 2023 and 5.33% in 2024. These figures indicate a robust housing market that has maintained its upward trajectory even in the face of higher borrowing costs.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 11223 will continue to rise, potentially reaching or exceeding $1.1 million by 2029. This projection is based on the consistent historical appreciation and the area's sustained desirability. Average rent prices are also expected to increase, potentially surpassing $1,600 per month within the next five years, driven by the ongoing demand for rental properties and the overall cost of living increases in Brooklyn.
In summary, zip code 11223 has demonstrated a robust real estate market characterized by steadily increasing property values and rent prices. The stability in homeownership rates, despite rising home prices, suggests a strong core of long-term residents. The continued growth in both average home prices and rents, even in the face of rising interest rates, indicates a resilient and desirable housing market in this Brooklyn neighborhood.
