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Zip Code 06033: Rising Home Values and High Ownership Rates in Glastonbury Center, Connecticut
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 06033, representing Glastonbury Center in Connecticut, offers an intriguing landscape of homeownership and rental trends. This area has maintained a consistently high rate of homeownership over the past decade, with a slight decline observed in recent years. The average home prices have shown a steady upward trajectory, while average rent prices have fluctuated more unpredictably.
The homeownership rate in zip code 06033 has experienced a subtle shift from 81% in 2013 to 81% in 2022, with a slight dip to 78% in 2018 and 2019. This trend corresponds interestingly with the movement in average home prices. In 2013, the average home price was $287,182, which has grown significantly to $410,148 by 2022, representing a 42.8% increase over this period. The slight decrease in homeownership percentage could be attributed to the rising home prices, potentially making it more challenging for new buyers to enter the market.
Federal interest rates have played a crucial role in shaping homeownership trends. The period from 2013 to 2016 saw historically low interest rates, hovering around 0.1% to 0.4%. This coincided with a period of stable homeownership rates in zip code 06033, ranging from 79% to 81%. As interest rates began to rise from 2017 onwards, reaching 2.16% in 2019, we observed a slight decrease in homeownership to 78%. This aligns with the general trend where lower interest rates tend to encourage homeownership due to more affordable financing options.
The renter percentage in zip code 06033 has shown a modest increase from 18% in 2013 to 19% in 2022, with a peak of 22% in 2019. Average rent prices have demonstrated considerable volatility during this period. In 2013, the average rent was $676, which increased to a high of $1,012 in 2019 before dropping to $663 in 2022. This fluctuation in rent prices doesn't show a clear correlation with the renter percentage, suggesting that other factors, such as local economic conditions or housing supply, may have a more significant influence on the rental market in this area.
In 2023 and 2024, we see a continuation of the upward trend in average home prices in zip code 06033. The average home price reached $446,706 in 2023 and further increased to $486,325 in 2024, representing a 9% and 8.9% year-over-year increase respectively. This substantial growth coincides with a significant rise in federal interest rates, which stood at 5.02% in 2023 and 5.33% in 2024. These higher interest rates, combined with rising home prices, may impact affordability and potentially influence future homeownership rates in the area.
Looking ahead, predictive models suggest that average home prices in zip code 06033 are likely to continue their upward trajectory over the next five years, albeit potentially at a more moderate pace due to the current high interest rate environment. Average rent prices, given their historical volatility, are more challenging to predict but may stabilize or show modest increases as the housing market adjusts to current economic conditions.
In summary, zip code 06033 has maintained a high rate of homeownership despite significant increases in average home prices. The relationship between federal interest rates and homeownership rates is evident, with lower rates generally supporting higher ownership levels. The rental market has shown more variability, both in terms of renter percentages and average rent prices. The recent sharp increases in both home prices and interest rates in 2023 and 2024 may lead to shifts in the housing market dynamics in the coming years.
