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Zip Code 10128: Manhattan's Upper East Side Sees Fluctuating Home Values and Ownership Rates
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 10128, located in Manhattan, New York, offers a unique glimpse into the dynamic real estate landscape of one of the world's most iconic cities. This area has experienced significant fluctuations in homeownership rates, average home prices, and average rent prices over the past decade, reflecting broader economic trends and local market conditions.
The homeownership rate in zip code 10128 has shown a gradual increase over the years, rising from 31% in 2013 to 34% in 2019, before slightly decreasing to 32% in 2022. This trend correlates interestingly with the average home prices in the area. In 2013, the average home price was $884,628, which steadily increased to a peak of $1,275,255 in 2022, representing a substantial 44% increase over this period. The rise in homeownership despite increasing prices suggests a strong desire for property ownership in this Manhattan neighborhood, possibly driven by long-term investment considerations and the prestige associated with owning property in New York City.
Federal interest rates have played a significant role in shaping homeownership trends in zip code 10128. The period from 2013 to 2016 saw historically low interest rates, ranging from 0.11% to 0.40%, which coincided with the initial increase in homeownership from 31% to 33%. This alignment supports the well-established trend that lower interest rates generally encourage homeownership due to more affordable financing options. However, as interest rates began to rise more sharply from 2017 onwards, reaching 1.68% in 2022, the homeownership rate stabilized around 32-34%, indicating a potential cooling effect on property purchases.
Renter percentages in zip code 10128 have inversely mirrored the homeownership trends, decreasing from 69% in 2013 to 66% in 2019, before slightly increasing to 68% in 2022. Interestingly, average rent prices have shown a consistent upward trend during this period, rising from $1,950 in 2013 to $2,290 in 2022, an increase of about 17%. This trend suggests that despite rising rents, the demand for rental properties in this Manhattan zip code remains strong, possibly due to the area's desirability and the high costs associated with purchasing property.
The years 2023 and 2024 have brought significant changes to the real estate market in zip code 10128. The average home price in 2023 was $1,090,563, a notable decrease from the 2022 peak. This downward trend continued into 2024, with average home prices further declining to $1,042,347. Concurrently, federal interest rates have risen dramatically, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates, combined with the decreased home prices, suggest a cooling real estate market, potentially making homeownership more challenging despite lower purchase prices.
Looking ahead, predictive models forecast a potential stabilization in average home prices over the next five years, with modest growth expected as the market adjusts to higher interest rates. Average rent prices are projected to continue their upward trajectory, albeit at a slower pace, reflecting the ongoing demand for rental properties in this desirable Manhattan location.
In summary, zip code 10128 has demonstrated resilience in its real estate market, with homeownership rates remaining relatively stable despite significant fluctuations in average home prices and interest rates. The area continues to attract both homeowners and renters, underscoring its enduring appeal within the Manhattan real estate landscape. The recent market cooling presents both challenges and opportunities for potential homebuyers and investors in this dynamic New York City neighborhood.
