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Zip Code 13021: Auburn's Rising Home Values Amidst Stable Ownership Rates
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 13021, located in Auburn, New York, presents an intriguing case study of homeownership and rental trends over the past decade. This area has maintained a relatively stable homeownership rate, with a slight shift towards renting in recent years, while experiencing significant growth in average home prices and moderate increases in average rent prices.
The homeownership rate in zip code 13021 remained consistent at 61% from 2013 to 2021, before slightly decreasing to 60% in 2022. Despite this stability in ownership rates, average home prices have shown a substantial upward trend. In 2010, the average home price was $114,301, which steadily increased to $178,452 by 2022, representing a 56% increase over 12 years. This growth in home values did not significantly impact homeownership rates, suggesting that other factors, such as local economic conditions or housing preferences, may have played a role in maintaining the ownership percentage.
Federal interest rates have fluctuated over this period, potentially influencing homeownership trends. From 2010 to 2015, interest rates remained extremely low, below 0.2%, which typically encourages homebuying. However, the ownership rate in zip code 13021 did not show a significant increase during this period. As interest rates began to rise from 2016 onwards, reaching 1.68% in 2022, there was a slight decrease in homeownership, which aligns with the general trend of higher interest rates making mortgages less affordable.
The renter population in zip code 13021 has seen a minor increase, from 39% in 2013 to 40% in 2022. This shift coincides with a rise in average rent prices. In 2013, the average rent was $764, which increased to $845 by 2022, representing a 10.6% increase over nine years. This growth in rent prices, while notable, has been less dramatic than the increase in home values. The moderate rise in rent prices, coupled with the significant increase in home values, may have contributed to the slight shift towards renting in recent years.
In 2023 and 2024, the housing market in zip code 13021 continued its upward trajectory. The average home price reached $189,219 in 2023 and further increased to $198,982 in 2024, representing a 11.5% growth over two years. This rise occurred despite a significant increase in federal interest rates, which jumped to 5.02% in 2023 and 5.33% in 2024. These higher interest rates typically make mortgages more expensive, yet the continued rise in home prices suggests strong demand in the area.
Looking ahead, based on the historical data and recent trends, we can predict that average home prices in zip code 13021 will continue to rise over the next five years, potentially reaching around $230,000 by 2029. This projection assumes a continuation of the current growth rate and factors in potential economic fluctuations. Average rent prices are also expected to increase, albeit at a slower pace, potentially reaching approximately $920 by 2029. These predictions suggest that the area will likely continue to see property value appreciation, which could further impact the balance between homeownership and renting.
In summary, zip code 13021 has demonstrated resilience in its homeownership rates despite significant increases in average home prices. The slight shift towards renting in recent years, coupled with moderate increases in rent prices, indicates a dynamic housing market. The area's ability to maintain relatively stable ownership rates in the face of rising home values and fluctuating interest rates suggests a robust local housing market with potential for continued growth and evolution in the coming years.
