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Rising Home Values and Stable Ownership in Zip Code 12870: Schroon Lake's Resilient Real Estate 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 12870, located in Schroon Lake, New York, presents an intriguing case study of housing trends in a small, picturesque Adirondack community. Over the past decade, this area has experienced fluctuations in homeownership rates, average home prices, and average rent prices, reflecting broader economic shifts and local market dynamics. The homeownership rate in zip code 12870 has remained relatively stable, with some minor fluctuations. In 2013, the area boasted an 85% homeownership rate, which slightly decreased to 79% by 2015. However, it rebounded to 81% in 2022, indicating a strong preference for homeownership in this community. Concurrently, average home prices have shown a steady upward trajectory. In 2010, the average home price was $193,830, which gradually increased to $215,526 by 2018. The market then experienced a significant acceleration, with average home prices reaching $322,136 in 2022, representing a substantial 66% increase from 2010.
Federal interest rates have played a crucial role in shaping homeownership trends in zip code 12870. The period from 2010 to 2016 saw historically low interest rates, ranging from 0.1% to 0.4%, which likely contributed to the relatively high homeownership rates during this time. As interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, the homeownership rate remained stable at 81%, suggesting a resilient local housing market despite increasing borrowing costs.
Renter percentages in zip code 12870 have shown an inverse relationship to homeownership rates, naturally fluctuating between 14% and 25% over the observed period. Interestingly, average rent prices have exhibited considerable volatility. In 2013, the average rent was $897, which dropped to $626 in 2014 before rising again to $925 in 2016. By 2022, the average rent stood at $870, showing a slight decrease from its peak but remaining higher than the 2013 level. This fluctuation in rent prices may be attributed to changes in local economic conditions and housing supply dynamics.
The years 2023 and 2024 have seen continued growth in average home prices in zip code 12870. In 2023, the average home price reached $348,593, a significant jump from the previous year. This upward trend persisted into 2024, with average home prices slightly increasing to $349,478. Notably, federal interest rates have also risen substantially during this period, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homebuying decisions and potentially moderate price growth.
Looking ahead, predictive models suggest that average home prices in zip code 12870 are likely to continue their upward trajectory over the next five years, albeit at a potentially slower pace due to higher interest rates. Average rent prices are expected to stabilize and potentially increase moderately, reflecting the area's consistent demand for rental properties. However, the rate of increase may be tempered by the overall preference for homeownership in the community.
In summary, zip code 12870 demonstrates a robust housing market characterized by high homeownership rates and steadily appreciating property values. The area has shown resilience to economic fluctuations and interest rate changes, maintaining a strong preference for homeownership. The recent surge in home prices, coupled with rising interest rates, may reshape the market dynamics in the coming years, potentially affecting affordability and homeownership trends.
