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Zip Code 12865: Rising Home Values and Declining Ownership in Rural Salem, 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
Salem, located in zip code 12865 in New York state, is a small community with a population of 3,333 as of 2022. This area has experienced interesting shifts in homeownership rates and housing prices over the past decade, reflecting broader economic trends and local market dynamics.
The homeownership rate in Salem has shown a gradual decline from 2013 to 2022. In 2013, 84% of residents were homeowners, but by 2022, this figure had decreased to 79%. This trend coincides with a substantial increase in average home prices. In 2013, the average home price was $122,503, which rose steadily to reach $198,868 by 2022, representing a 62.3% increase over this period.
The relationship between federal interest rates and homeownership rates in Salem shows some correlation. From 2013 to 2015, when interest rates were extremely low (0.11% to 0.13%), homeownership rates remained stable at around 84%. However, as interest rates began to rise from 2016 onwards, reaching 1.68% in 2022, homeownership rates declined to 79%. This suggests that rising interest rates may have contributed to the decrease in homeownership, potentially making mortgages less affordable for some residents.
Renter percentages in Salem have increased from 16% in 2013 to 21% in 2022, mirroring the decline in homeownership. Interestingly, average rent prices have shown significant fluctuations during this period. In 2013, the average rent was $884, which increased to $1,068 in 2018, representing a 20.8% rise. However, rent prices then decreased to $939 in 2022, a 12.1% drop from the 2018 peak. These fluctuations may be influenced by factors such as local economic conditions and housing supply.
Looking at the most recent data, the average home price in Salem continued its upward trajectory, reaching $207,937 in 2023 and $220,002 in 2024. This represents a 10.6% increase from 2022 to 2024. Concurrently, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024, which may impact future homeownership rates and housing affordability in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in Salem will continue to rise, potentially reaching around $250,000 by 2029. This projection is based on the consistent upward trend observed over the past decade. For rent prices, the forecast suggests a more moderate increase, potentially reaching an average of around $1,100 per month by 2029, assuming the local economy remains stable and housing demand continues to grow.
In summary, Salem has experienced a gradual shift from homeownership to renting over the past decade, accompanied by significant increases in average home prices. The recent sharp rise in interest rates may further impact homeownership rates and housing affordability in the coming years. Despite some fluctuations, both home prices and rent are expected to continue their upward trajectory, reflecting ongoing demand for housing in this New York community.
