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Zip Code 11730: East Islip's Rising Home Values and Shifting Ownership Trends
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
East Islip, located in zip code 11730 in New York, is a community that has experienced notable shifts in homeownership and housing prices over the past decade. This analysis will explore the trends in ownership rates, average home prices, and average rent prices, providing insights into the local real estate market dynamics. The homeownership rate in East Islip has seen a gradual decline from 2013 to 2022. In 2013, 89% of residents were homeowners, but by 2022, this figure had decreased to 86%. During this same period, average home prices in the area have shown a significant upward trend. In 2013, the average home price was $368,519, and by 2022, it had risen to $581,178, representing a substantial increase of 57.7% over nine years. This inverse relationship between homeownership rates and average home prices suggests that rising property values may be making homeownership less accessible for some residents.
Federal interest rates have played a role in shaping homeownership trends in East Islip. From 2013 to 2016, interest rates remained historically low, hovering around 0.1% to 0.4%. During this period, homeownership rates remained relatively stable at 90%. However, as interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, we observed a corresponding decline in homeownership rates to 86%. This trend aligns with the general principle that lower interest rates tend to encourage homeownership due to more affordable financing options.
The percentage of renters in East Islip has shown a slight increase from 9% in 2013 to 14% in 2022. Concurrently, average rent prices have experienced fluctuations but with an overall upward trend. In 2013, the average rent was $1,935, which increased to $2,270 by 2022, representing a 17.3% rise over nine years. The population of East Islip has remained relatively stable during this period, with 14,025 residents in 2013 and 14,007 in 2022. The modest increase in the renter population, coupled with rising rent prices, suggests a growing demand for rental properties in the area.
In 2023 and 2024, East Islip has continued to see growth in average home prices. The average home price reached $589,909 in 2023 and further increased to $624,453 in 2024, representing a 5.9% year-over-year growth. This ongoing appreciation in home values occurred despite a significant increase in federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact affordability and potentially influence future homeownership trends in the area.
Looking ahead, predictive models suggest that average home prices in East Islip will continue to rise over the next five years, albeit at a potentially slower pace due to higher interest rates. Average rent prices are also expected to increase, driven by the growing renter population and overall housing demand in the area. However, the rate of increase may moderate as the market adjusts to economic conditions and housing supply changes.
In summary, East Islip has experienced a gradual shift towards a higher proportion of renters, coinciding with substantial increases in both average home prices and rent prices. The interplay between federal interest rates, housing affordability, and demographic changes has shaped these trends. As the community moves forward, balancing housing affordability with market demand will be crucial for maintaining a diverse and stable residential landscape in zip code 11730.
