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Zip Code 11239: Brooklyn's Rising Home Values and Shifting Ownership Landscape
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 11239, located in Brooklyn, New York, has experienced significant changes in its housing landscape over the past decade. This area has seen a gradual increase in homeownership rates alongside fluctuating average home prices and rent costs, reflecting the dynamic nature of New York City's real estate market.
The percentage of owner-occupied homes in zip code 11239 has shown a consistent upward trend, rising from 5% in 2013 to 11% in 2022. This growth in homeownership coincides with an overall increase in average home prices. In 2019, the average home price was $461,407, which rose to $577,572 by 2022, representing a substantial 25.2% increase over just three years. This trend suggests a growing interest in homeownership within the area, despite rising property values.
The relationship between federal interest rates and homeownership rates in this zip code is notable. As interest rates remained historically low between 2013 and 2021, ranging from 0.08% to 1.68%, the homeownership rate steadily increased. This aligns with the general trend of lower interest rates encouraging homeownership due to more affordable financing options. However, it's worth noting that even as interest rates began to rise significantly in 2022 to 1.68%, the homeownership rate in the zip code continued to climb, reaching 11% that year.
Renter percentages in zip code 11239 have gradually decreased from 95% in 2013 to 89% in 2022, inversely mirroring the rise in homeownership. Interestingly, average rent prices have shown some volatility during this period. The average rent peaked at $1,041 in 2015, then experienced fluctuations, ultimately decreasing to $903 in 2022. This trend occurred despite a population increase from 13,063 in 2013 to 16,048 in 2022, suggesting that other factors beyond population growth are influencing rental prices in the area.
Looking at the most recent data, the average home price in zip code 11239 reached $593,320 in 2023 and further increased to $607,918 in 2024. This represents a 2.7% year-over-year increase from 2023 to 2024. Concurrently, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024, which may impact future homebuying trends in the area.
Applying predictive models to forecast 5-year trends, we can anticipate continued growth in average home prices, albeit potentially at a slower rate due to higher interest rates. Average rent prices may stabilize or see modest increases as the area becomes more desirable. However, the rate of increase in homeownership might slow down if higher interest rates persist, potentially affecting affordability for new buyers.
In summary, zip code 11239 has demonstrated a clear trend towards increased homeownership and rising property values over the past decade. Despite fluctuations in average rent prices and significant increases in federal interest rates, the area has maintained its appeal to both homeowners and renters. The coming years will likely see continued growth in the real estate market of this Brooklyn neighborhood, with the interplay between interest rates, housing prices, and demographic shifts shaping its future housing landscape.
