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Zip Code 12188: Rising Home Values and Ownership Trends in Waterford, 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 12188, located in Waterford, New York, has experienced notable shifts in homeownership rates and housing prices over the past decade. This area has seen a general trend towards increased homeownership and rising average home prices, with some fluctuations in rental rates and prices.
The ownership percentage in zip code 12188 has shown an overall upward trend, increasing from 64% in 2014 to 69% in 2022. This rise in homeownership coincided with a significant increase in average home prices, which grew from $212,761 in 2014 to $304,830 in 2022, representing a 43.3% increase over eight years. The relationship between ownership rates and home prices suggests that despite rising costs, more residents were able to enter the housing market.
Federal interest rates have played a crucial role in shaping homeownership trends in the area. The period from 2014 to 2021 saw historically low interest rates, ranging from 0.09% to 1.68%. This low-interest environment likely contributed to the increase in homeownership, as it made mortgages more affordable for potential buyers. The ownership rate peaked at 72% in 2021 when interest rates were at a mere 0.08%, demonstrating the strong inverse relationship between interest rates and homeownership.
Renter percentages in zip code 12188 have generally decreased as homeownership increased. The renter-occupied rate fell from 36% in 2014 to 31% in 2022. Despite this decrease, average rent prices showed an overall upward trend, rising from $996 in 2014 to $1,021 in 2022, a 2.5% increase. This modest increase in rent prices, compared to the substantial rise in home prices, may have contributed to the shift towards homeownership for those who could afford it.
In 2023 and 2024, the housing market in zip code 12188 continued to experience growth. Average home prices reached $320,763 in 2023 and further increased to $333,247 in 2024, representing a 9.3% 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. These higher interest rates may impact future homeownership rates and price growth.
Looking ahead, predictive models suggest that average home prices in zip code 12188 may continue to rise over the next five years, albeit at a potentially slower rate due to higher interest rates. Average rent prices are also expected to increase moderately, reflecting ongoing demand for rental properties in the area. However, the rate of increase for both home prices and rents may be tempered by economic factors and housing market dynamics.
In summary, zip code 12188 has demonstrated a clear trend towards increased homeownership and rising property values over the past decade. The interplay between low interest rates, growing home prices, and relatively stable rent increases has shaped the local housing market. As interest rates have recently increased, it will be crucial to monitor how these changes affect homeownership rates and housing affordability in the coming years.
