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Zip Code 12485: Rising Home Values and Ownership Trends in Tannersville's Catskill Mountain Retreat
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 12485, located in Tannersville, New York, is a small but dynamic area that has experienced significant changes in its housing market over the past decade. This analysis will explore the trends in homeownership rates, average home prices, and average rent prices, highlighting the interplay between these factors and their relationship to federal interest rates.
The homeownership rate in zip code 12485 has fluctuated considerably from 2013 to 2022. In 2013, the area had a high homeownership rate of 73%, which gradually declined to a low of 49% in 2019. However, there has been a notable recovery since then, with the homeownership rate reaching 69% in 2022. Concurrently, average home prices have shown a consistent upward trend. In 2013, the average home price was $149,395, which steadily increased to $322,376 by 2022, representing a substantial 115.8% increase over this period.
The relationship between federal interest rates and homeownership rates in this zip code shows some interesting patterns. From 2013 to 2015, when interest rates were extremely low (0.11% to 0.13%), homeownership rates remained high, ranging from 72% to 77%. As interest rates began to rise from 2016 to 2019 (0.4% to 2.16%), homeownership rates declined, reaching a low of 49% in 2019. However, the sharp drop in interest rates in 2020 and 2021 (0.38% and 0.08% respectively) coincided with a rebound in homeownership rates, which rose to 62% in 2021 and further to 69% in 2022, despite a significant increase in interest rates to 1.68% that year.
Renter percentages and average rent prices in zip code 12485 have shown an inverse relationship to homeownership rates. As homeownership declined from 2013 to 2019, the percentage of renters increased from 27% to 51%. During this period, average rent prices initially rose from $990 in 2013 to a peak of $1,064 in 2014, before experiencing a dramatic decline to $410 by 2019. Interestingly, as the renter percentage decreased from 2019 to 2022 (from 51% to 31%), average rent prices continued to fall, reaching $378 in 2022. This trend suggests that other factors, such as local economic conditions or changes in housing supply, may be influencing rent prices in addition to demand from renters.
In 2023 and 2024, the housing market in zip code 12485 continued to evolve. The average home price rose to $354,866 in 2023 and further increased to $373,233 in 2024, representing a 15.8% increase from 2022 to 2024. This growth occurred despite a significant rise in federal interest rates, which reached 5.02% in 2023 and 5.33% in 2024. These high interest rates would typically be expected to dampen home buying activity, yet the continued rise in home prices suggests strong demand or limited supply in this area.
Looking ahead, based on the historical trends and recent data, we can make some predictions for the next five years. Average home prices are likely to continue their upward trajectory, albeit potentially at a slower pace due to the high interest rates. We might expect average home prices to reach around $450,000 by 2029. Average rent prices, which have been declining, may start to stabilize or even increase slightly as the market adjusts, potentially reaching around $450 per month by 2029.
In summary, zip code 12485 has experienced significant fluctuations in homeownership rates and a consistent increase in average home prices over the past decade. The area has shown resilience in its housing market, with homeownership rates recovering and home prices continuing to rise even in the face of increasing interest rates. The rental market has seen declining prices despite periods of increased renter percentages, suggesting a complex interplay of local factors influencing housing dynamics in this area.
