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Zip Code 12847: Rising Home Values and High Ownership Rates in Long Lake, 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 12847, located in Long Lake, New York, presents an intriguing landscape of homeownership and housing market dynamics. This area has experienced notable fluctuations in its ownership rates and average home prices over the years, reflecting the changing economic conditions and local market forces.
The homeownership rate in zip code 12847 has shown a general upward trend, increasing from 83% in 2013 to 90% in 2022. This rise in homeownership coincides with a significant increase in average home prices, which grew from $165,672 in 2010 to $256,618 in 2022, representing a 54.9% increase over 12 years. The relationship between homeownership rates and average home prices appears to be positively correlated, suggesting that rising property values have not deterred local residents from purchasing homes.
Federal interest rates have played a crucial role in shaping homeownership trends in the area. The period from 2010 to 2015 saw historically low interest rates, ranging from 0.09% to 0.18%. During this time, homeownership rates in zip code 12847 increased from 83% in 2013 to 89% in 2015. This aligns with the general trend of lower interest rates encouraging homeownership due to more affordable financing options. As interest rates began to rise gradually from 2016 onwards, homeownership rates in the area continued to remain high, reaching 93% in 2018 and maintaining above 90% through 2022.
Renter percentages in zip code 12847 have inversely mirrored the homeownership trends, decreasing from 17% in 2013 to 10% in 2022. Interestingly, average rent prices have shown considerable volatility during this period. Average rent increased sharply from $628 in 2013 to $1,071 in 2016, a 70.5% jump in just three years. However, it then decreased to $674 in 2022, nearly returning to 2013 levels. This fluctuation in rent prices doesn't appear to have a direct correlation with the declining renter percentage, suggesting that other factors, such as local economic conditions or housing supply, may have a more significant influence on the rental market in this area.
Looking at the most recent data, average home prices in zip code 12847 continued their upward trajectory, reaching $262,843 in 2023 and further increasing to $269,504 in 2024. This represents a 5% increase from 2022 to 2024, indicating a steady appreciation in property values. Concurrently, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024. Despite these higher interest rates, which typically make mortgages more expensive, the local housing market appears to remain robust.
Applying predictive models to forecast 5-year trends, we anticipate average home prices in zip code 12847 to continue their upward trajectory, potentially reaching around $300,000 by 2029. This projection is based on the consistent growth observed over the past decade and the area's apparent resilience to economic fluctuations. Average rent prices are expected to stabilize and potentially see modest increases, reaching approximately $700-$750 per month by 2029, assuming local economic conditions remain stable and housing supply keeps pace with demand.
In summary, zip code 12847 has demonstrated a strong trend towards homeownership, with rates consistently above 90% in recent years despite rising home prices. The area has shown resilience to increasing interest rates, maintaining high homeownership levels even as rates have climbed. The rental market, while smaller, has shown more volatility in pricing but appears to be stabilizing. These trends suggest a robust and desirable housing market in Long Lake, with a strong preference for homeownership among residents.
