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Zip Code 06378: Mystic's Rising Home Values and Shifting Ownership in a Historic Seaport
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
Mystic, situated in zip code 06378 in Connecticut, is a coastal community renowned for its historic seaport and aquarium. This area has experienced significant changes in homeownership rates and property values over the past decade, with a general trend towards increasing average home prices and fluctuating rental markets.
The homeownership rate in Mystic has shown some variability but has remained relatively stable over the years. In 2013, the homeownership rate was 84%, which slightly increased to 87% by 2019. However, by 2022, it had decreased to 77%. This decline in homeownership coincided with a significant increase in average home prices. From 2016 to 2022, average home prices rose from $404,348 to $603,244, representing a substantial 49% increase over six years. This trend suggests that rising home prices may have made homeownership less accessible for some residents.
Federal interest rates have played a role in shaping homeownership trends in Mystic. For instance, the period from 2016 to 2020 saw relatively low interest rates, ranging from 0.4% to 2.16%. During this time, homeownership rates remained relatively high, between 83% and 87%. However, as interest rates began to rise sharply in 2022 to 1.68%, and even more dramatically in 2023 to 5.02%, we observed a corresponding decrease in homeownership rates to 77% in 2022.
Regarding rental trends, the percentage of renters in Mystic has fluctuated over the years, generally inversely to homeownership rates. In 2013, renters comprised 16% of the population, which decreased to 13% by 2019. However, by 2022, the renter percentage had increased to 23%. Average rent prices have shown significant volatility, dropping from $1,148 in 2013 to a low of $783 in 2015, before rising again to $1,126 in 2022. This represents a 44% increase in average rent from 2015 to 2022. The increase in both renter percentage and average rent prices in recent years may be attributed to the growing population, which rose from 3,342 in 2019 to 6,002 in 2022.
In 2023 and 2024, Mystic has continued to see growth in average home prices. The average home price reached $656,102 in 2023 and further increased to $695,467 in 2024. This represents a 15.3% increase from 2022 to 2024. Concurrently, federal interest rates have remained high, at 5.02% in 2023 and 5.33% in 2024, which may continue to impact homeownership rates in the area.
Looking ahead, based on the observed trends, we can predict that average home prices in Mystic will continue to rise over the next five years, potentially reaching around $800,000 by 2029. Average rent prices are also likely to increase, possibly surpassing $1,400 per month within the same timeframe. However, these projections may be influenced by various factors such as economic conditions, population growth, and housing supply.
In summary, Mystic has experienced significant changes in its housing market over the past decade. The area has seen a general trend of increasing average home prices, which has coincided with fluctuations in homeownership rates. Rental markets have also shown volatility, with recent years seeing both increased renter percentages and average rent prices. The interplay between federal interest rates, population growth, and housing affordability continues to shape the real estate landscape in this Connecticut coastal community.
