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Zip Code 11421: Rising Home Values and Shifting Ownership Patterns in Queens, New York
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 11421, located in Queens, 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 shift in its residential landscape, with fluctuations in both owner-occupied and renter-occupied properties, alongside substantial increases in housing costs. The ownership percentage in zip code 11421 has shown some variability over the years. In 2013, the area had a homeownership rate of 53%, which increased to a peak of 57% in 2017. However, this trend reversed in subsequent years, with the ownership rate declining to 51% by 2022. Concurrently, average home prices in the area have seen a steady upward trajectory. In 2013, the average home price was $348,354, which more than doubled to $687,368 by 2022. This substantial increase in home values, particularly the sharp rise between 2020 and 2022 where prices jumped from $630,061 to $687,368, may have contributed to the decline in homeownership rates as affordability became a growing concern for potential buyers.
The relationship between federal interest rates and homeownership rates in zip code 11421 appears to follow the general trend observed nationally. From 2013 to 2017, when interest rates were historically low (ranging from 0.11% to 1%), homeownership rates in the area increased from 53% to 57%. This aligns with the principle that lower interest rates tend to encourage homeownership by making mortgages more affordable. However, as interest rates began to rise more significantly from 2018 onwards, reaching 1.68% in 2022, the homeownership rate in the area declined to 51%, suggesting that higher borrowing costs may have deterred some potential homebuyers.
The renter percentage in zip code 11421 has inversely mirrored the homeownership trends, increasing from 43% in 2017 to 49% in 2022. This shift towards renting coincides with a steady increase in average rent prices. In 2013, the average rent was $1,406, which rose to $1,677 by 2022, representing a 19.3% increase over nine years. The population in the zip code has fluctuated during this period, with a notable increase from 39,492 in 2020 to 42,614 in 2021, before settling at 41,204 in 2022. These population changes, coupled with rising home prices, may have contributed to the increased demand for rental properties and the subsequent rise in rent prices.
Looking at the most recent data, the average home price in zip code 11421 slightly decreased from $687,368 in 2022 to $681,988 in 2023, and further to $680,246 in 2024. This slight downturn coincides with a significant increase in federal interest rates, which rose from 1.68% in 2022 to 5.02% in 2023, and further to 5.33% in 2024. These higher interest rates may be cooling the housing market, leading to a stabilization or slight decrease in home prices.
Applying predictive models to forecast 5-year trends, we can anticipate that average home prices in zip code 11421 may continue to stabilize or experience modest growth, given the current high interest rate environment. Average rent prices are likely to continue their upward trajectory, albeit at a potentially slower pace, as the rental market often remains strong when homeownership becomes less accessible due to high home prices and interest rates.
In summary, zip code 11421 has witnessed a shift from homeownership to renting over the past decade, driven by substantial increases in home prices and, more recently, rising interest rates. The area has seen significant appreciation in property values, with average home prices nearly doubling between 2013 and 2022. However, the most recent data suggests a potential cooling in the housing market. The rental market has strengthened in response to these changes, with both the percentage of renters and average rent prices increasing. These trends reflect the complex interplay between housing costs, interest rates, and population dynamics in shaping the residential landscape of this Queens neighborhood.
