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Zip Code 11233: Brooklyn's Resilient Housing Market Sees 138% Home Value Increase
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 11233, located in Brooklyn, New York, has experienced significant changes in its real estate landscape over the past decade. This area has seen a gradual increase in homeownership rates alongside substantial growth in average home prices and average rent prices.
The homeownership rate in zip code 11233 has shown a modest but steady increase from 22% in 2013 to 24% in 2022. During this same period, average home prices have risen dramatically, from $353,612 in 2013 to $841,117 in 2022, representing a 138% increase. This trend suggests that despite the rapid appreciation in home values, there has been a slight shift towards homeownership in the area. The relationship between these two factors indicates that some residents have been able to enter the housing market despite rising prices, possibly due to increased incomes or other economic factors specific to this Brooklyn neighborhood.
Federal interest rates have played a role in homeownership trends in zip code 11233. The period from 2013 to 2016 saw historically low interest rates, hovering around 0.1% to 0.4%. During this time, the homeownership rate remained stable at 22%. As interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, the homeownership rate actually increased slightly to 24%. This suggests that other local factors, such as employment opportunities or neighborhood development, may have had a stronger influence on homeownership than interest rates alone in this particular zip code.
Renter percentages in zip code 11233 have slightly decreased from 78% in 2013 to 76% in 2022, inversely mirroring the modest increase in homeownership. During this period, average rent prices have risen from $1,200 in 2013 to $1,354 in 2022, an increase of 12.8%. The population of the zip code has also grown significantly, from 67,085 in 2013 to 82,390 in 2022, a 22.8% increase. This population growth, coupled with the still-high percentage of renters, has likely contributed to the upward pressure on rent prices, albeit at a slower rate than the increase in home prices.
In 2023 and 2024, the average home prices in zip code 11233 showed a slight decrease followed by a minor uptick. The average home price in 2023 was $814,257, representing a 3.2% decrease from 2022. However, in 2024, the price slightly increased to $818,309. This recent trend coincides with higher federal interest rates, which reached 5.02% in 2023 and 5.33% in 2024, potentially influencing buyer behavior and home prices in the area.
Looking ahead, based on historical trends and current market conditions, we can project potential 5-year trends for average home and rent prices in zip code 11233. Average home prices may continue to experience moderate growth, potentially reaching around $900,000 to $950,000 by 2029. Average rent prices could also continue their upward trajectory, potentially reaching $1,500 to $1,600 per month in the same timeframe. However, these projections are subject to various economic factors and local market conditions.
In summary, zip code 11233 in Brooklyn has demonstrated resilience in its real estate market, with a slight increase in homeownership despite rapidly rising home prices. The area has experienced significant population growth, which has likely contributed to the steady increase in both home values and rent prices. While recent years have shown some stabilization in home prices, the long-term trend remains positive, suggesting continued demand for housing in this Brooklyn neighborhood.
