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Zip Code 06412: Rising Home Values and Ownership Trends in Chester 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 06412, located in Chester Center, Connecticut, showcases interesting trends in homeownership and housing prices over the past decade. This area has experienced significant changes in its real estate market, with notable shifts in ownership percentages, average home prices, and average rent prices.
The homeownership rate in zip code 06412 has shown a general upward trend from 2013 to 2020, increasing from 70% to 76%. This rise in homeownership coincided with a steady increase in average home prices. In 2013, the average home price was $282,453, and by 2020, it had risen to $309,614, representing a 9.6% increase over seven years. However, there was a slight dip in homeownership rates from 2020 to 2022, decreasing from 76% to 72%, while average home prices continued to climb significantly, reaching $395,434 in 2022, a 27.7% increase from 2020.
The relationship between federal interest rates and homeownership rates in this zip code appears to follow the general trend of lower interest rates encouraging homeownership. For instance, as interest rates remained low between 2013 and 2017 (ranging from 0.11% to 1%), homeownership rates increased from 70% to 75%. However, as interest rates began to rise in 2018 and 2019 (1.83% and 2.16% respectively), the homeownership rate stabilized around 76-78%.
Renter percentages in zip code 06412 have fluctuated inversely to homeownership rates, decreasing from 30% in 2013 to 22% in 2018, before rising again to 28% in 2022. Average rent prices have shown significant volatility during this period. In 2013, the average rent was $879, which decreased to $805 in 2017. However, there was a sharp increase to $1,161 in 2018, followed by a slight dip to $1,084 in 2019. By 2022, the average rent had risen to $1,346, representing a 53.1% increase from 2013. This trend in rent prices doesn't seem to correlate directly with the renter percentage, suggesting other factors, such as local economic conditions or housing supply, may be influencing rent prices.
In 2023 and 2024, the average home prices in zip code 06412 continued their upward trajectory. The average home price reached $431,019 in 2023 and further increased to $456,057 in 2024, representing a 15.3% rise over two years. This significant growth occurred despite the federal interest rates rising to 5.02% in 2023 and 5.33% in 2024, which are substantially higher than the rates seen in the previous decade.
Looking ahead, based on the observed trends, we can predict that average home prices in zip code 06412 may continue to rise over the next five years, albeit potentially at a slower rate due to higher interest rates. Average rent prices are also likely to increase, possibly at a more moderate pace. However, if interest rates remain high, we might see a slight decrease in homeownership rates and a corresponding increase in renter percentages.
In summary, zip code 06412 has experienced a significant increase in both homeownership rates and average home prices over the past decade. Despite recent increases in interest rates, home prices have continued to rise substantially. The rental market has shown volatility, with sharp increases in average rent prices not always correlating with changes in renter percentages. These trends suggest a dynamic and evolving real estate market in this Connecticut zip code.
