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Zip Code 12189: Rising Home Values and Declining Ownership in Watervliet, 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 12189, located in Watervliet, New York, has experienced significant changes in its housing landscape over the past decade. This 6.72 square mile area has seen fluctuations in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market dynamics.
The homeownership rate in zip code 12189 has declined notably from 2013 to 2022. In 2013, 42% of residents owned their homes, but by 2020, this figure had dropped to 35%. There was a slight rebound to 38% in 2022. This trend coincides with changes in average home prices, which have shown substantial growth. In 2013, the average home price was $172,681, and by 2022, it had risen to $247,549, representing a 43.4% increase over nine years.
The relationship between federal interest rates and homeownership rates in this zip code follows a generally expected pattern. As interest rates remained low from 2013 to 2016 (ranging from 0.11% to 0.40%), homeownership rates remained relatively stable, hovering around 41-43%. However, as interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), homeownership rates declined, reaching 36% by 2019. This trend suggests that higher interest rates may have made home purchases less affordable for some residents.
Conversely, the percentage of renters in zip code 12189 has increased over time, from 58% in 2013 to 62% in 2022. This rise in renters corresponds with fluctuations in average rent prices. In 2013, the average rent was $919, which increased to $1,025 in 2016 before dipping to $878 in 2018. By 2022, the average rent had risen again to $1,004. The population growth from 19,600 in 2013 to 19,984 in 2022 may have contributed to the increased demand for rental properties.
Looking at the most recent data, the average home price in zip code 12189 for 2023 was $261,907, and for 2024, it is $274,583, showing continued appreciation. This upward trend occurs despite the significant increase in federal interest rates, which stood at 5.02% in 2023 and 5.33% in 2024. These higher interest rates could potentially slow down the rate of home price appreciation in the near future.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 12189 will continue to rise, albeit at a potentially slower rate due to higher interest rates. The average home price could reach approximately $300,000 by 2029. Average rent prices are also expected to increase, potentially surpassing $1,200 per month within the next five years, driven by population growth and the trend towards renting.
In summary, zip code 12189 has experienced a shift towards renting, with homeownership rates declining and then stabilizing in recent years. Average home prices have shown significant appreciation, while rent prices have fluctuated but generally trended upward. The interplay between federal interest rates, local population growth, and housing market dynamics continues to shape the residential landscape of this New York community.
