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Zip Code 11935: Cutchogue's Rising Home Values and Stable Ownership Rates
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 11935, located in Cutchogue, New York, is a picturesque area known for its beautiful landscapes and rich agricultural heritage. This coastal community has experienced notable fluctuations in homeownership rates and property values over the past decade. The area has maintained a consistently high rate of owner-occupied housing, while average home prices have shown a significant upward trend, particularly in recent years.
The ownership percentage in zip code 11935 has remained relatively stable, hovering around 90% throughout the observed period. In 2013, the homeownership rate stood at 87%, gradually increasing to 91% by 2021. This high rate of owner-occupied housing has persisted despite substantial growth in average home prices. From 2013 to 2022, average home prices in the area rose from $575,915 to $1,084,409, representing an impressive 88% increase over nine years. Notably, the most dramatic price surge occurred between 2020 and 2022, with average home values jumping from $764,728 to $1,084,409, a 42% increase in just two years.
The relationship between federal interest rates and homeownership rates in zip code 11935 appears to follow the general trend of lower interest rates encouraging homeownership. For instance, as interest rates remained low between 2013 and 2020 (ranging from 0.09% to 0.38%), the area maintained its high homeownership rate, even as average home prices steadily increased. This suggests that the low-interest-rate environment may have helped offset the impact of rising home prices on affordability for potential buyers.
Renter percentages in zip code 11935 have remained relatively low, fluctuating between 8% and 13% from 2013 to 2022. The average rent prices, however, have shown an upward trend. In 2013, the average rent was $1,487, which increased to $1,612 by 2022, representing an 8.4% rise over nine years. Interestingly, the highest average rent of $1,786 was recorded in 2019, coinciding with a slight dip in the homeownership rate to 89%. The population of the area has remained relatively stable, with 3,632 residents in 2013 and 3,349 in 2022, which may have contributed to the moderate increases in average rent prices.
Looking at the most recent data, average home prices in zip code 11935 continued their upward trajectory, reaching $1,141,520 in 2023 and further climbing to $1,164,856 in 2024. This represents a 7.4% increase from 2022 to 2024. Concurrently, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact homebuying affordability and potentially influence future homeownership rates in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 11935 will continue to rise, albeit at a potentially slower rate due to the current higher interest rate environment. We project average home prices could reach approximately $1,300,000 to $1,400,000 by 2029. Average rent prices are also expected to increase, potentially reaching $1,800 to $2,000 per month within the same timeframe, driven by ongoing demand for housing in this desirable coastal area.
In summary, zip code 11935 has demonstrated remarkable resilience in maintaining high homeownership rates despite substantial increases in average home prices. The area's desirability, coupled with historically low interest rates, has likely contributed to this trend. However, the recent spike in interest rates may pose challenges for future homebuyers. The rental market, while smaller, has shown steady growth in average rents, reflecting the overall attractiveness of the area. As we look ahead, the interplay between rising home values, higher interest rates, and the area's enduring appeal will shape the future of Cutchogue's housing market.
