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Zip Code 12306: Average Home Values and Ownership Trends in Rotterdam, New York
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 12306, located in Rotterdam, New York, presents an intriguing case study of homeownership and housing market dynamics. This area has experienced notable shifts in ownership percentages and housing prices over the past decade, reflecting broader economic trends and local market conditions.
The homeownership rate in zip code 12306 has shown a gradual decline from 2013 to 2022. In 2013, the area boasted a 72% homeownership rate, which remained relatively stable until 2020 when it dropped to 68%. This downward trend continued through 2022, with the homeownership rate holding steady at 68%. Concurrently, average home prices in the area have seen significant growth. In 2013, the average home price was $157,044, and by 2022, it had risen to $232,650, representing a substantial 48% increase over this period.
The relationship between federal interest rates and homeownership rates in zip code 12306 aligns with well-established economic principles. As interest rates remained low from 2013 to 2020, ranging from 0.09% to 0.38%, the homeownership rate remained relatively stable at around 71-72%. However, as interest rates began to rise sharply in 2022 to 1.68%, the homeownership rate dropped to 68%, suggesting that higher borrowing costs may have impacted affordability and homebuying decisions.
Renter percentages in zip code 12306 have inversely mirrored the homeownership trends, increasing from 28% in 2013 to 32% in 2022. This shift coincided with fluctuations in average rent prices. In 2013, the average rent was $1,045, which peaked at $1,110 in 2014 before gradually declining to $985 in 2022. Despite the overall increase in the renter population, the average rent prices have shown a slight downward trend, possibly influenced by increased rental supply or local economic factors.
Looking at the most recent data, the average home price in zip code 12306 reached $244,876 in 2023 and further increased to $254,913 in 2024. This continued appreciation occurred despite a significant rise in interest rates, which climbed to 5.02% in 2023 and 5.33% in 2024. These figures indicate a robust housing market that has maintained growth even in the face of higher borrowing costs.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 12306 will continue to rise, albeit at a potentially slower rate due to higher interest rates. The average home price could reach approximately $290,000 by 2029. Average rent prices are expected to stabilize and potentially increase moderately, possibly reaching around $1,100 per month by 2029, as demand for rental properties may increase if homeownership becomes less accessible due to higher home prices and interest rates.
In summary, zip code 12306 has experienced a gradual shift towards a higher percentage of renters, coupled with significant appreciation in home values. The area has demonstrated resilience in its housing market, with home prices continuing to rise even as interest rates have increased. The interplay between homeownership rates, rental demand, and housing prices in this zip code reflects the complex dynamics of local real estate markets and broader economic trends.
