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Zip Code 10538: High Home Values and Stable Ownership in Larchmont, New York
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 10538, located in Larchmont, New York, presents an intriguing case study of real estate trends in an affluent suburban area. This ZIP code has seen relatively stable homeownership rates, hovering around 77-80% throughout the analyzed period, while experiencing significant fluctuations in average home prices and average rent prices.
The relationship between homeownership rates and average home prices in this area shows some interesting patterns. In 2013, when the homeownership rate was 77%, the average home price was $1,025,505. As average home prices increased to $1,164,400 in 2018, the homeownership rate also rose slightly to 79%. This trend continued into 2019, with homeownership reaching 80% despite a slight dip in average home prices to $1,130,730. This suggests that rising home values did not significantly deter homeownership in this affluent area.
Federal interest rates appear to have had some influence on homeownership rates in ZIP code 10538. For instance, when interest rates were at historic lows of 0.08% in 2021, the homeownership rate remained high at 79%. This aligns with the general trend of lower interest rates encouraging homeownership due to more affordable financing options. However, the impact seems somewhat muted in this area, possibly due to the high-income demographic that may be less sensitive to interest rate fluctuations.
Renter percentages and average rent prices in ZIP code 10538 show a clear correlation. In 2013, with 22% of residents renting, the average rent was $1,718. As the renter percentage increased slightly to 23% in 2017, average rent also rose to $2,097. Interestingly, even as the renter percentage decreased to 20% in 2019, average rent continued to climb to $2,140. This suggests that despite fewer renters, demand for rental properties remained strong, possibly due to the area's desirability and limited housing supply.
Looking at the most recent data, the average home price in ZIP code 10538 reached $1,462,580 in 2023 and further increased to $1,524,520 in 2024. This represents a significant jump from the 2022 average of $1,392,727. Concurrently, federal interest rates rose sharply to 5.02% in 2023 and 5.33% in 2024, marking a substantial increase from the 1.68% rate in 2022. Despite these higher interest rates, home prices continued to appreciate, indicating strong demand and potentially limited supply in this desirable area.
Applying predictive models to forecast 5-year trends, we can anticipate continued growth in both average home prices and average rent prices in ZIP code 10538. Based on historical data and current market conditions, average home prices could potentially reach around $1.8 million by 2029. Average rent prices, which have shown steady increases, may approach or exceed $2,500 per month in the same timeframe. However, these projections are subject to various economic factors and local market conditions.
In summary, ZIP code 10538 demonstrates a resilient real estate market characterized by high homeownership rates and steadily increasing property values. The area has maintained strong demand for both owned and rented properties, even in the face of rising interest rates and economic fluctuations. The recent sharp increase in home prices, coupled with higher interest rates, suggests a robust local economy and continued desirability of the area. Moving forward, both homeowners and renters in this ZIP code can expect to see continued appreciation in property values and rental rates, reflecting the enduring appeal of Larchmont as a residential location.
