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Zip Code 11229: Brooklyn's Resilient Housing Market Sees Average Home Values Rise 57.8% in a Decade
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 11229, located in Brooklyn, New York, is a vibrant and diverse area known for its mix of residential neighborhoods and commercial districts. Over the past decade, this zip code has experienced significant changes in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market dynamics.
The homeownership rate in zip code 11229 has shown a gradual increase from 46% in 2013 to 47% in 2022, with a peak of 48% in 2021. This trend has coincided with a substantial rise in average home prices, which increased from $481,773 in 2013 to $760,431 in 2022, representing a 57.8% increase over this period. The most significant year-over-year increase occurred between 2015 and 2016, when average home prices jumped from $547,836 to $605,134, a 10.5% increase.
Federal interest rates have played a crucial role in shaping homeownership trends in zip code 11229. The period from 2013 to 2016 saw historically low interest rates, ranging from 0.11% to 0.40%, which likely contributed to the steady increase in homeownership rates during this time. As interest rates began to rise more sharply from 2017 onwards, reaching 2.16% in 2019, the homeownership rate stabilized around 47-48%, suggesting that higher borrowing costs may have tempered further growth in homeownership.
Renter percentages in zip code 11229 have slightly decreased from 54% in 2013 to 53% in 2022, inversely mirroring the trend in homeownership rates. Average rent prices, however, have shown a consistent upward trend, rising from $1,243 in 2013 to $1,386 in 2022, an 11.5% increase. The most significant year-over-year increase in average rent occurred between 2020 and 2021, jumping from $1,401 to $1,538, a 9.8% increase. This spike in rent prices coincided with a population increase from 79,364 in 2020 to 83,922 in 2021, suggesting that increased demand for housing in the area may have driven up rental costs.
In 2023 and 2024, the average home prices in zip code 11229 experienced a slight decline, dropping to $721,186 in 2023 and further to $719,462 in 2024. This represents a 5.4% decrease from the 2022 peak of $760,431. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, reaching levels not seen since before the 2008 financial crisis. These higher interest rates likely contributed to the cooling of home prices in the area.
Looking ahead, predictive models suggest that average home prices in zip code 11229 may continue to experience moderate fluctuations over the next five years. The recent decline in prices, coupled with high interest rates, could lead to a period of price stabilization or slow growth. Average rent prices, on the other hand, are projected to continue their upward trend, albeit at a more moderate pace than seen in recent years. This forecast is based on the area's consistent population growth and the ongoing balance between homeownership and renting in the zip code.
In summary, zip code 11229 has demonstrated resilience in its housing market over the past decade, with gradually increasing homeownership rates and substantial growth in average home prices until 2022. The recent cooling of home prices in 2023 and 2024, influenced by rising interest rates, marks a new phase in the area's housing market dynamics. The rental market has remained robust, with steadily increasing average rent prices reflecting the area's continued desirability. As the housing market in this Brooklyn zip code navigates changing economic conditions, it will likely continue to adapt, balancing the needs of both homeowners and renters in this diverse urban community.
