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Rising Home Values and Stable Ownership in Zip Code 13143: Red Creek's Rural Real Estate Resilience
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 13143, located in Red Creek, New York, presents an interesting case study of homeownership and housing market trends. This rural area has maintained a consistently high rate of owner-occupied housing, with a slight decline in recent years. The average home prices and average rent in this zip code have shown notable fluctuations over the past decade, reflecting broader economic trends and local market conditions.
The homeownership rate in zip code 13143 has remained relatively stable, with a slight downward trend. In 2013, the area boasted an 84% owner-occupancy rate, which gradually decreased to 83% by 2022. This minor shift coincided with a significant increase in average home prices. From 2013 to 2022, the average home price rose from $90,727 to $148,144, representing a substantial 63.3% increase over nine years. This trend suggests that while homeownership remains high, rising property values may be making it increasingly challenging for new buyers to enter the market.
Federal interest rates have played a crucial role in shaping homeownership trends in zip code 13143. The period from 2013 to 2016 saw historically low interest rates, hovering around 0.1% to 0.4%. During this time, the homeownership rate remained steady at 84%, likely supported by favorable borrowing conditions. As interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, we observe a slight decline in homeownership to 83%. This correlation aligns with the general trend of lower interest rates encouraging homeownership due to more affordable financing options.
The rental market in zip code 13143 has shown modest growth alongside the slight decrease in homeownership. The percentage of renter-occupied housing increased from 16% in 2013 to 17% in 2022. Average rent prices have fluctuated during this period, rising from $688 in 2013 to $688 in 2022, with some variations in between. Notably, there was a significant spike in average rent to $812 in 2021, possibly due to short-term market pressures or changes in available rental stock. The population of the zip code decreased from 3,149 in 2013 to 2,876 in 2022, which may have influenced the rental market dynamics.
In 2023 and 2024, the housing market in zip code 13143 continued its upward trajectory. The average home price reached $153,576 in 2023 and further increased to $162,601 in 2024, representing a 6.5% year-over-year growth. This growth occurred despite a significant rise in federal interest rates, which stood at 5.02% in 2023 and 5.33% in 2024. These higher interest rates might typically be expected to cool the housing market, but the continued price appreciation suggests strong underlying demand or limited housing supply in the area.
Looking ahead, based on historical trends and current market conditions, we can project potential scenarios for the next five years. Average home prices in zip code 13143 may continue to appreciate, albeit at a potentially slower rate due to higher interest rates. A conservative estimate might see average home prices reaching around $180,000 to $190,000 by 2029. Average rent prices, which have shown less consistent growth, might stabilize or see modest increases, potentially reaching $750 to $800 per month by 2029, assuming no major economic disruptions.
In summary, zip code 13143 demonstrates a strong preference for homeownership, with a gradual but small shift towards renting. The area has experienced significant appreciation in average home values, particularly in recent years, despite rising interest rates. The rental market has remained relatively stable with modest growth. These trends suggest a resilient local housing market that has thus far weathered broader economic changes, but may face challenges in maintaining affordability for prospective homebuyers in the coming years.
