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Zip Code 12883: Rising Home Values and Shifting Ownership in Ticonderoga, 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 12883, located in Ticonderoga, New York, presents an intriguing case study of housing trends in a small community. This area has experienced fluctuating homeownership rates and significant changes in average home and rent prices over the past decade, reflecting broader economic shifts and local market dynamics.
The ownership percentage in this zip code has shown a notable trend, starting at 68% in 2013 and peaking at 79% in 2017, before declining to 65% in 2022. This trend correlates interestingly with average home prices, which have seen a steady increase from $118,018 in 2010 to $191,075 in 2022. The most dramatic rise occurred between 2020 and 2022, with average home prices jumping from $141,480 to $191,075, a 35% increase in just two years. This rapid appreciation may have contributed to the decline in homeownership rates, as rising prices potentially priced out some potential buyers.
Federal interest rates have played a significant role in shaping homeownership trends in zip code 12883. The period of low interest rates from 2013 to 2016, when rates were below 0.5%, coincided with an increase in homeownership from 68% to 74%. However, as interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, we see a corresponding decline in homeownership rates, dropping to 65% by 2022. This trend aligns with the general principle that lower interest rates tend to encourage homeownership by making mortgages more affordable.
Renter percentages in zip code 12883 have inversely mirrored homeownership rates, decreasing from 32% in 2013 to a low of 21% in 2017, before rising again to 35% in 2022. Average rent prices have shown volatility, starting at $882 in 2013, dropping to a low of $619 in 2016, and then rebounding to $730 in 2022. Interestingly, the highest average rent of $900 was recorded in 2021, coinciding with a period of rapid home price appreciation. This suggests that as home prices became less affordable, demand for rentals increased, driving up rent prices.
The years 2023 and 2024 have seen continued growth in average home prices in zip code 12883. In 2023, the average home price reached $198,106, and in 2024, it further increased to $206,290. This represents a 7.9% increase from 2022 to 2024. Concurrently, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may put pressure on homeownership rates in the coming years.
Looking ahead, predictive models suggest that average home prices in zip code 12883 will continue to rise over the next five years, albeit at a more moderate pace. We can expect average home prices to potentially reach around $230,000 by 2029. Average rent prices are also projected to increase, possibly reaching $850-$900 per month in the same timeframe. However, these trends may be influenced by broader economic factors and local market conditions.
In summary, zip code 12883 has experienced significant shifts in homeownership rates and housing prices over the past decade. The inverse relationship between homeownership and rental rates, coupled with the impact of interest rates and rapidly appreciating home values, highlights the complex dynamics at play in this local housing market. As we move forward, the interplay between these factors will continue to shape the housing landscape in this New York community.
