Loading Content...
Zip Code 11001: Rising Home Values and Strong Ownership in Floral Park, NY
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Zip code 11001, located in Floral Park, New York, is a vibrant suburban area known for its strong homeownership culture and steady property value growth. Over the past decade, this zip code has experienced a notable increase in homeownership rates, rising from 80% in 2013 to 84% in 2022. Concurrently, average home prices have shown a consistent upward trend, while average rent prices have also increased, albeit at a more moderate pace.
The relationship between homeownership rates and average home prices in zip code 11001 demonstrates a positive correlation. As homeownership increased from 80% in 2013 to 84% in 2022, average home prices rose significantly from $456,459 to $740,429 during the same period. This represents a substantial 62.2% increase in average home values over nine years. The year 2021 saw a particularly sharp rise in both homeownership (83%) and average home prices ($703,268), indicating a strong demand for property ownership in the area.
Federal interest rates have played a crucial role in shaping homeownership trends in zip code 11001. The period from 2013 to 2016 saw historically low interest rates, ranging from 0.11% to 0.40%, which coincided with stable homeownership rates of 80%. As interest rates began to rise from 2017 (1%) to 2019 (2.16%), homeownership rates remained resilient, only dropping slightly to 79% in 2017 before recovering to 80% in 2018 and 2019. Interestingly, when interest rates plummeted to 0.38% in 2020 and 0.08% in 2021, homeownership rates surged to 82% and 83% respectively, showcasing how low interest rates can stimulate home buying activity.
The renter population in zip code 11001 has been declining as homeownership rates increased. The percentage of renters decreased from 20% in 2013 to 16% in 2022. Despite this decline, average rent prices have shown a steady upward trend. In 2013, the average rent was $1,593, which increased to $1,968 by 2022, representing a 23.5% rise over nine years. The most significant jump in average rent occurred between 2019 and 2021, rising from $1,802 to $2,108, a 17% increase in just two years. This surge in rent prices, despite a decreasing renter population, suggests a competitive rental market with potentially limited supply.
In 2023 and 2024, the housing market in zip code 11001 continued its upward trajectory. The average home price in 2023 reached $753,406, a 1.8% increase from 2022. In 2024, the average home price further climbed to $779,499, representing a 3.5% year-over-year increase. Notably, these price increases occurred despite a significant rise in federal interest rates, which reached 5.02% in 2023 and 5.33% in 2024. This suggests a robust demand for housing in the area, capable of withstanding higher borrowing costs.
Looking ahead, predictive models forecast continued growth in both average home and rent prices for zip code 11001 over the next five years. Average home prices are projected to surpass $850,000 by 2029, assuming the current growth rate persists. Average rent prices are expected to reach approximately $2,300 by 2029, based on the historical trend. However, these projections may be influenced by various factors such as economic conditions, local development, and changes in federal interest rates.
In summary, zip code 11001 has demonstrated a strong trend towards increased homeownership, with a corresponding rise in average home prices. The area has shown resilience to fluctuations in federal interest rates, maintaining high homeownership rates even during periods of rate increases. The rental market, while shrinking in terms of population, has seen steady increases in average rent prices, indicating a competitive landscape for available rental properties. The continued growth in both home prices and rent suggests that Floral Park remains an attractive location for both homeowners and investors.
