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Zip Code 12056: Stable Homeownership Amidst Rising Average Home Values in Duane Lake, NY
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 12056, located in Duane Lake, New York, presents an interesting case study of homeownership and housing market trends. This area has experienced significant fluctuations in both ownership rates and housing prices over the past decade, reflecting broader economic shifts and local market dynamics.
The homeownership rate in zip code 12056 has shown a general trend of stability with some notable variations. In 2013, the area boasted an 89% homeownership rate, which remained relatively constant until 2020 when it dropped to 80%. However, by 2022, it rebounded to 87%. This resilience in homeownership coincides with a steady increase in average home prices. From 2013 to 2022, average home prices in the area rose from $206,842 to $330,439, representing a substantial 59.8% increase over nine years.
Federal interest rates have played a significant role in shaping homeownership trends in zip code 12056. The period from 2013 to 2016 saw historically low interest rates, hovering around 0.1% to 0.4%. During this time, homeownership rates remained high at around 89-90%. As interest rates began to climb from 2017 onwards, reaching 1.68% in 2022, we observed a slight dip in homeownership to 87%. This aligns with the general trend of lower interest rates encouraging homeownership due to more affordable financing options.
Renter percentages in zip code 12056 have shown an inverse relationship to homeownership rates, naturally. The renter population increased from 10% in 2013 to 20% in 2020, before decreasing to 13% in 2022. Interestingly, average rent prices have not always moved in tandem with renter percentages. Average rent rose from $874 in 2013 to $1,172 in 2021, a 34% increase, despite fluctuations in the renter population. This suggests that other factors, such as overall housing demand and local economic conditions, may have a stronger influence on rent prices than the proportion of renters alone.
In 2023 and 2024, the housing market in zip code 12056 continued its upward trajectory. Average home prices reached $343,646 in 2023 and further increased to $356,412 in 2024, representing a 7.9% rise over two years. This growth occurred despite a significant increase in federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024. This suggests a strong underlying demand for housing in the area, potentially driven by factors such as local economic growth or changing demographic preferences.
Looking ahead, predictive models suggest that the upward trend in both average home prices and rent prices is likely to continue in zip code 12056 over the next five years. Average home prices are projected to exceed $400,000 by 2029, while average rent prices could surpass $1,300 per month. However, these projections assume a continuation of current economic conditions and should be interpreted with caution, as unforeseen events can significantly impact housing markets.
In summary, zip code 12056 has demonstrated a robust housing market characterized by high homeownership rates and steadily increasing property values. The area has shown resilience in the face of interest rate fluctuations, maintaining strong homeownership levels even as rates have risen. The rental market, while smaller, has also seen consistent growth in prices. These trends suggest a desirable living environment with sustained demand for both owned and rented housing, positioning zip code 12056 as an area of potential continued growth in the coming years.
