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Zip Code 06750: Rising Home Values and Stable Ownership in Bantam, 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 06750, located in Bantam, Connecticut, is a small community covering 7.37 square miles. This area has experienced fluctuations in homeownership rates and housing prices over the past decade, reflecting broader economic trends and local market dynamics. The homeownership rate in zip code 06750 has remained relatively stable, with slight variations between 65% and 71% from 2013 to 2022. In 2013, the homeownership rate was 67%, and it reached its peak of 71% in 2020 before settling at 69% in 2022. During this period, average home prices showed a significant upward trend. In 2020, the average home price was $256,524, which increased to $310,195 in 2021, and further rose to $345,770 in 2022, representing a 34.8% increase over two years.
The relationship between federal interest rates and homeownership rates in this zip code shows some correlation. For instance, when interest rates were at historic lows of 0.08% in 2021, the homeownership rate was 69%. This aligns with the general trend of lower interest rates encouraging homeownership due to more affordable financing options. However, it's worth noting that despite the interest rate increase to 1.68% in 2022, the homeownership rate remained steady at 69%, suggesting other factors may also influence homeownership in this area.
Renter percentages in zip code 06750 have fluctuated between 28% and 35% from 2013 to 2022. The highest percentage of renters was observed in 2015 at 35%, coinciding with an average rent of $998. Interestingly, average rent prices have shown considerable volatility. In 2014, the average rent peaked at $1,013, then decreased to $492 in 2019, and further dropped to $442 in 2021 before slightly increasing to $481 in 2022. This downward trend in rent prices, despite the population growth from 768 in 2020 to 1,036 in 2022, suggests a complex interplay of local economic factors affecting the rental market.
As of 2024, the average home price in zip code 06750 has reached $390,025, marking a 13.1% increase from 2022. The federal interest rate stands at 5.33% in 2024, significantly higher than the 1.68% observed in 2022. This substantial rise in interest rates, coupled with increasing home prices, may impact affordability and potentially influence future homeownership trends in the area.
Looking ahead, based on the observed trends, it's projected that average home prices in zip code 06750 will continue to rise over the next five years, potentially reaching around $450,000 by 2029. However, the rate of increase may moderate due to higher interest rates. Average rent prices, which have shown volatility, are expected to stabilize and potentially increase moderately, possibly reaching around $550 per month by 2029, assuming continued population growth and economic stability in the area.
In summary, zip code 06750 has maintained a relatively stable homeownership rate despite significant increases in average home prices. The rental market has experienced volatility in both renter percentages and average rent prices. The recent sharp rise in interest rates, combined with increasing home prices, may present challenges for potential homebuyers in the coming years, potentially affecting the balance between owners and renters in this community.
