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Zip Code 10004: Manhattan's Financial District Sees Fluctuating Home Values Amidst Rising Ownership
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 10004, located in Manhattan, New York, is a small but densely populated area covering just 0.52 square miles. This financial district neighborhood has experienced significant changes in homeownership rates and housing prices over the past decade, reflecting the dynamic nature of New York City's real estate market. The homeownership rate in zip code 10004 has shown an overall upward trend, increasing from 14% in 2013 to 25% in 2022. This rise in homeownership coincided with fluctuations in average home prices. From 2013 to 2017, average home prices increased steadily, rising from $1,323,622 to $1,803,875, a 36% increase. However, since 2017, there has been a downward trend in average home prices, with the 2022 average at $1,268,980, a 30% decrease from the 2017 peak.
Federal interest rates have played a role in homeownership trends. The period of low interest rates from 2013 to 2016 (ranging from 0.09% to 0.40%) coincided with the initial increase in homeownership. As interest rates began to rise in 2017 (1.00%) and 2018 (1.83%), the rate of homeownership growth slowed but continued to increase, possibly due to other local market factors.
The percentage of renters in zip code 10004 has decreased from 86% in 2013 to 75% in 2022, inversely mirroring the rise in homeownership. Despite this decrease, average rent prices have shown a general upward trend. In 2013, the average rent was $2,110, which increased to $3,429 by 2022, representing a 62% rise. This increase in rent prices occurred alongside population growth, from 2,651 residents in 2013 to 3,758 in 2022, potentially contributing to the upward pressure on rental costs.
In 2023, the average home price in zip code 10004 decreased to $1,162,492, a further 8.4% drop from 2022. This decline continued into 2024, with the average home price reaching $1,133,450. Interestingly, this downward trend in home prices occurred despite a significant increase in federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024.
Looking ahead, based on recent trends, we can predict that average home prices in zip code 10004 may continue to decrease slightly over the next five years, potentially stabilizing around $1,100,000. However, given the area's desirability and limited space, a sharp decline is unlikely. Average rent prices, on the other hand, are expected to continue their upward trajectory, potentially reaching $3,800 to $4,000 by 2029, driven by the area's consistent population growth and high demand for rental properties.
In summary, zip code 10004 has experienced a notable increase in homeownership rates over the past decade, coupled with fluctuating home prices that have recently trended downward. Despite a decrease in the percentage of renters, average rent prices have consistently risen, reflecting the high demand for housing in this densely populated Manhattan neighborhood. The interplay between federal interest rates, local market dynamics, and population growth continues to shape the real estate landscape in this vibrant New York City zip code.
