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Rising Home Values and Stable Ownership in Panama, NY: A Decade of Housing 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
Panama, located in New York state, is a small community with a population that has fluctuated between 1,970 and 2,158 residents over the past decade. The village has experienced notable shifts in homeownership rates and housing prices, reflecting broader economic trends and local market dynamics.
The relationship between homeownership rates and average home prices in Panama has shown some interesting patterns. In 2013, the homeownership rate was at 85%, with an average home price of $78,740. As home prices steadily increased, reaching $103,695 by 2019, the homeownership rate declined to 78%. This trend suggests that rising home prices may have made homeownership less attainable for some residents. However, by 2022, despite a significant jump in average home prices to $160,254, the homeownership rate rebounded to 84%, indicating a complex interplay of factors beyond just price affecting ownership trends.
Federal interest rates have played a role in shaping homeownership patterns in Panama. The period from 2013 to 2016 saw historically low interest rates, ranging from 0.09% to 0.40%, which coincided with a slight decline in homeownership from 85% to 79%. As interest rates began to rise more significantly from 2017 onwards, reaching 1.68% in 2022, the homeownership rate in Panama actually increased to 84%. This counterintuitive trend suggests that local factors may have a stronger influence on homeownership than national interest rates in this particular community.
Renter percentages and average rent prices in Panama have shown some volatility. In 2013, the renter-occupied percentage was 15%, with an average rent of $787. By 2018, the renter percentage increased to 25%, while the average rent decreased to $656, suggesting an increased supply of rental properties potentially driving down prices. However, by 2022, the renter percentage dropped back to 16%, with average rent rising to $739. This fluctuation could be attributed to changes in local employment opportunities, housing availability, or shifts in population demographics.
In 2023 and 2024, Panama saw continued growth in average home prices, reaching $167,453 in 2023 and $175,210 in 2024. This represents a 9.2% increase from 2022 to 2024. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, marking a substantial increase from the 1.68% rate in 2022. These higher interest rates could potentially impact future homeownership trends and housing affordability in the village.
Looking ahead, predictive models suggest that average home prices in Panama may continue to rise over the next five years, potentially reaching around $200,000 by 2029 if current growth rates persist. Average rent prices, which have been more volatile, could stabilize and potentially increase to about $800-$850 per month in the same timeframe, assuming steady economic conditions and population growth.
In summary, Panama has demonstrated resilience in homeownership rates despite rising home prices and fluctuating interest rates. The community has experienced significant growth in property values, particularly in recent years, while maintaining a high rate of owner-occupied housing. The rental market has shown more variability, reflecting the dynamic nature of this small but evolving New York village.
