Loading Content...
Zip Code 11216: Brooklyn's Resilient Housing Market Sees Average Home Values Double Amid Shifting Ownership Patterns
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 11216, located in Brooklyn, New York, has experienced significant changes in homeownership rates, average home prices, and average rent prices over the past decade. This area has seen a gradual shift in ownership trends, coupled with substantial increases in both home values and rental costs.
The homeownership rate in zip code 11216 has shown a modest but steady increase from 2013 to 2022. In 2013, the ownership rate was 22%, and by 2022, it had risen to 24%. This 2% increase in homeownership occurred alongside a dramatic rise in average home prices. In 2013, the average home price was $471,552, which more than doubled to $1,045,371 by 2022. This represents a staggering 122% increase in average home values over a nine-year period.
The relationship between federal interest rates and homeownership rates in this zip code shows an interesting trend. Despite historically low interest rates from 2013 to 2021 (ranging from 0.08% to 1.83%), the homeownership rate only increased by 2 percentage points. This suggests that other factors, such as rapidly rising home prices, may have counteracted the potential positive effect of low interest rates on homeownership.
Renter percentages in zip code 11216 have slightly decreased from 78% in 2013 to 76% in 2022, correlating with the small increase in homeownership. During this same period, average rent prices rose significantly. In 2013, the average rent was $1,332, which increased to $1,674 by 2022, representing a 26% increase. The population of the zip code also grew from 53,450 in 2013 to 61,685 in 2022, potentially contributing to the upward pressure on rent prices.
Looking at the most recent data, the average home price in zip code 11216 for 2023 was $1,032,227, showing a slight decrease from 2022. In 2024, the average home price further decreased to $1,010,319. This recent downward trend coincides with a significant increase in federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024. These higher interest rates may be contributing to the cooling of home prices in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 11216 may continue to experience a slight downward adjustment in the short term due to the current high interest rates. However, given the long-term appreciation trend and the desirability of Brooklyn real estate, prices are likely to stabilize and potentially resume a modest upward trajectory in the latter part of the 5-year period. Average rent prices are expected to continue rising, albeit at a slower pace than seen in previous years, driven by the area's consistent population growth and the high cost of homeownership pushing more residents towards renting.
In summary, zip code 11216 has witnessed a slight increase in homeownership, accompanied by substantial growth in both average home prices and rent costs over the past decade. The recent cooling of home prices, influenced by rising interest rates, suggests a potential shift in the market dynamics. However, the area's popularity and consistent population growth indicate that both the housing and rental markets in this Brooklyn zip code are likely to remain robust in the coming years.
