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Zip Code 06088: Rising Home Values and Stable Ownership in Broad Brook, 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 06088, located in Broad Brook, Connecticut, is a suburban area covering 11.25 square miles. This zip code has experienced fluctuating homeownership rates and significant changes in average home and rent prices over the past decade. The homeownership rate in zip code 06088 has shown some variability between 2013 and 2022. In 2013, the homeownership rate was 70%, which increased slightly to 72% in 2017. However, it dipped to 63% in 2019 before recovering to 70% in 2022. During this period, average home prices have steadily increased. In 2013, the average home price was $166,789, which rose to $236,021 by 2022, representing a 41.5% increase over nine years. This trend suggests that despite rising home prices, homeownership rates have remained relatively stable in the area.
Federal interest rates have played a role in homeownership trends. From 2013 to 2016, interest rates remained low (below 0.5%), coinciding with relatively high homeownership rates of 70% or above. As interest rates began to rise in 2017 (1%) and 2018 (1.83%), homeownership rates experienced some fluctuation, dropping to 63% in 2019 when interest rates peaked at 2.16%. However, the subsequent drop in interest rates to 0.08% in 2021 corresponded with a rebound in homeownership to 69%.
Renter percentages in zip code 06088 have inversely mirrored homeownership rates, ranging from 28% to 37% between 2013 and 2022. Average rent prices have shown an overall upward trend during this period. In 2013, the average rent was $957, which decreased slightly to $881 in 2015 before rising steadily to $1,225 in 2022, representing a 28% increase over the nine-year period. The population in the zip code has fluctuated, reaching a peak of 4,892 in 2013 and settling at 4,623 in 2022, which may have influenced rental demand and prices.
In 2023, the average home price in zip code 06088 reached $256,733, with federal interest rates at 5.02%. As of 2024, the average home price has further increased to $278,270, while interest rates have slightly risen to 5.33%. These figures indicate a continuing trend of rising home prices despite higher interest rates, suggesting strong demand in the area.
Looking ahead, predictive models forecast that average home prices in zip code 06088 will continue to rise over the next five years, potentially reaching around $320,000 by 2029. Average rent prices are also expected to increase, possibly surpassing $1,500 per month within the same timeframe. These projections are based on the historical trends observed in the area and assume relatively stable economic conditions.
In summary, zip code 06088 has maintained a relatively stable homeownership rate despite rising home prices. The area has seen significant appreciation in both home values and rent prices over the past decade. The relationship between federal interest rates and homeownership rates has been notable, with lower rates generally corresponding to higher homeownership. As the area continues to see increasing property values and rents, it may face challenges in maintaining affordability for both homeowners and renters in the coming years.
