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Zip Code 11206: Brooklyn's Evolving Real Estate Landscape with Average Home Values Exceeding $800,000
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 11206, located in Brooklyn, New York, has experienced significant demographic and real estate changes over the past decade. This area has consistently maintained a high percentage of renters, with homeownership rates remaining stable at around 10-11% from 2013 to 2022. Meanwhile, average home prices and average rent prices have shown notable fluctuations during this period.
The homeownership rate in zip code 11206 has remained relatively constant, hovering between 10% and 11% from 2013 to 2022. Despite this stability, average home prices have shown considerable volatility. In 2013, the average home price was $510,236, which steadily increased to a peak of $813,309 in 2018, representing a 59.4% increase over five years. However, after 2018, there was a notable decline, with average home prices dropping to $710,438 by 2021, a 12.6% decrease from the peak. This trend suggests that factors other than homeownership rates, such as market conditions and overall economic factors, have been influencing average home prices in this area.
Federal interest rates have played a role in shaping homeownership trends in zip code 11206. From 2013 to 2020, interest rates remained relatively low, ranging from 0.09% to 2.16%. During this period, the homeownership rate remained stable at 10%. However, as interest rates began to rise more significantly in 2022 (1.68%) and 2023 (5.02%), there was a slight increase in homeownership to 11%. This suggests that despite rising interest rates, other factors may have contributed to maintaining homeownership levels in this area.
The renter population in zip code 11206 has consistently accounted for 88-90% of the total occupancy from 2013 to 2022. During this period, average rent prices have shown a general upward trend. In 2013, the average rent was $1,142, which increased to $1,332 by 2019, representing a 16.6% increase over six years. The population also grew during this time, from 82,683 in 2013 to 89,433 in 2019, potentially contributing to the rising rent prices due to increased demand. Interestingly, there was a significant jump in average rent to $1,535 in 2021, coinciding with a population increase to 93,761, before dropping back to $1,329 in 2022.
Looking at the most recent data, the average home price in zip code 11206 was $780,424 in 2023 and increased to $826,107 in 2024, showing a 5.9% year-over-year increase. This uptick occurred despite the federal interest rate rising from 5.02% in 2023 to 5.33% in 2024, suggesting that local market factors may be outweighing the impact of higher borrowing costs.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 11206 will continue to rise, potentially reaching around $950,000 by 2029. This projection is based on the historical growth patterns and recent market resilience. For average rent prices, we expect a moderate but steady increase, potentially reaching approximately $1,600 by 2029, assuming continued population growth and demand for rental properties in the area.
In summary, zip code 11206 in Brooklyn has maintained a high percentage of renters over the past decade, with only slight increases in homeownership rates. Average home prices have shown significant volatility, reaching a peak in 2018 before declining and then rebounding in recent years. Average rent prices have generally trended upward, with some fluctuations, likely influenced by population growth and market demand. The area has demonstrated resilience in its real estate market, with recent price increases despite rising interest rates, suggesting strong local factors driving property values.
