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Zip Code 11228: Rising Home Values and Shifting Ownership Trends in Brooklyn
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
Brooklyn's zip code 11228 is a dynamic area that has experienced notable shifts in homeownership rates and property values over the past decade. This analysis explores the interplay between ownership percentages, average home prices, and average rent costs in this vibrant neighborhood.
The homeownership rate in zip code 11228 has shown a slight decline from 58% in 2013 to 55% in 2022. During this same period, average home prices have seen a significant increase. In 2013, the average home price was $640,654, which rose steadily to reach $1,065,067 by 2022, representing a remarkable 66% increase over nine years. This inverse relationship suggests that rising property values may have made homeownership less attainable for some residents.
Federal interest rates have played a crucial role in shaping homeownership trends. The period from 2013 to 2016 saw historically low interest rates, hovering around 0.1% to 0.4%. During this time, homeownership in the zip code remained relatively stable at 55-58%. However, as interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, we observed a slight decrease in homeownership rates. This trend aligns with the general understanding that lower interest rates tend to encourage homeownership due to more affordable financing options.
As homeownership rates decreased, the percentage of renters in zip code 11228 increased from 42% in 2013 to 45% in 2022. Concurrently, average rent prices showed a steady upward trend. In 2013, the average rent was $1,412, which increased to $1,592 by 2022, marking a 12.7% rise. The growing renter population, coupled with rising rent prices, indicates a strong demand for rental properties in the area. This trend may be partially attributed to the increasing population, which grew from 45,148 in 2013 to 46,019 in 2022, potentially driving up demand for housing.
Looking at the most recent data, the average home price in zip code 11228 reached $1,080,074 in 2023 and further increased to $1,096,972 in 2024. This represents a continued upward trajectory in property values. Simultaneously, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact homebuying decisions and potentially influence future homeownership rates in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 11228 will continue to rise, potentially reaching around $1.3 million by 2029. Average rent prices are also expected to increase, potentially surpassing $1,800 per month within the same timeframe. These projections are based on historical trends and current market conditions.
In summary, zip code 11228 in Brooklyn has experienced a gradual shift towards a higher percentage of renters, accompanied by substantial increases in both average home prices and rent costs. The interplay between federal interest rates, population growth, and property values has shaped these trends. As the area continues to evolve, it will be crucial to monitor how these factors influence housing affordability and accessibility for both homeowners and renters in this dynamic Brooklyn neighborhood.
