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Water Mill: Soaring Home Values in a Picturesque New York Community
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Water Mill, located in New York, is a picturesque community known for its scenic beauty and affluent residents. The area has experienced notable fluctuations in homeownership rates and average home prices over the past decade, with a general trend towards increasing property values and a relatively stable ownership percentage.
The homeownership rate in Water Mill has remained consistently high, ranging from 83% to 88% between 2013 and 2022. This stability in ownership percentages coincides with a significant increase in average home prices. In 2013, the average home price was $1,868,572, which rose dramatically to $3,760,026 by 2022, representing a 101% increase over this period. This trend suggests that despite the substantial rise in property values, the community has maintained a strong base of homeowners.
Federal interest rates have played a role in homeownership trends in Water Mill. From 2013 to 2016, when interest rates were exceptionally low (ranging from 0.09% to 0.4%), the homeownership rate remained stable at around 83-88%. As interest rates began to rise more significantly from 2017 onwards, reaching 1.68% in 2022, the homeownership rate actually increased slightly to 87% in 2022. This suggests that other factors, such as the desirability of the area and the affluence of its residents, may have a stronger influence on homeownership than interest rates in this particular market.
Renter percentages in Water Mill have fluctuated between 11% and 15% from 2013 to 2022. Interestingly, average rent prices have shown volatility during this period. In 2013, the average rent was $1,739, which increased to $2,111 in 2019, representing a 21% rise. However, by 2022, the average rent had slightly decreased to $2,177. This trend doesn't directly correlate with the renter percentage, which remained relatively stable. The population growth from 1,973 in 2013 to 2,947 in 2022 may have contributed to maintaining demand for rental properties despite the fluctuations in rent prices.
In 2023 and 2024, Water Mill continued to see growth in average home prices. The average home price reached $3,974,528 in 2023 and further increased to $4,020,053 in 2024. This represents a 5.7% increase from 2022 to 2023 and a more modest 1.1% increase from 2023 to 2024. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, potentially impacting affordability for new homebuyers.
Looking ahead, based on the historical data and recent trends, it's projected that average home prices in Water Mill will continue to rise over the next five years, albeit at a more moderate pace. A conservative estimate suggests an annual growth rate of 3-5%, which could push the average home price to around $4.7-$5.1 million by 2029. Average rent prices are also expected to increase, potentially reaching $2,500-$2,700 per month in the same timeframe, assuming a similar growth rate to recent years.
In summary, Water Mill has demonstrated resilience in its high homeownership rates despite significant increases in property values. The community's ability to maintain a stable ownership percentage in the face of rising home prices and fluctuating interest rates suggests a strong local economy and continued desirability of the area. While rent prices have shown some volatility, the overall trend points towards gradual increases in both home values and rental costs in the coming years.
