Loading Content...
Zip Code 13027: Rising Home Values and Shifting Ownership in Radisson, New York
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
DATA SOURCE
United States Census Bureau: American Community Survey Data (ACS)
Zillow: Zillow Home Value Index (ZHVI)
Zip code 13027, located in Radisson, New York, has experienced significant changes in homeownership rates, average home prices, and average rent prices over the past decade. This area has seen a gradual shift in its housing market dynamics, with interesting trends emerging in both the ownership and rental sectors.
The homeownership rate in zip code 13027 has shown a slight decline over the years, moving from 74% in 2014 to 71% in 2022. This decrease in homeownership coincides with a substantial increase in average home prices. In 2014, the average home price was $154,510, but by 2022, it had risen to $243,314, representing a 57.5% increase over eight years. This inverse relationship between homeownership rates and average home prices suggests that rising property values may be making homeownership less accessible for some residents.
Federal interest rates have played a significant role in shaping homeownership trends in the area. For instance, the period from 2014 to 2016 saw relatively low interest rates (0.09% to 0.4%), which coincided with stable homeownership rates of 74%. However, as interest rates began to rise more sharply from 2017 (1%) to 2019 (2.16%), we observe a slight dip in homeownership to 73%. The dramatic drop in interest rates in 2020 (0.38%) and 2021 (0.08%) didn't immediately boost homeownership, likely due to the rapid increase in home prices during this period.
The rental market in zip code 13027 has shown interesting trends as well. The percentage of renters increased from 26% in 2014 to 29% in 2022. During this period, average rent prices fluctuated, starting at $959 in 2014, dropping to a low of $874 in 2016, and then rising to $991 in 2022. This represents a modest 3.3% increase in average rent over eight years, significantly lower than the growth in home prices. The population growth from 32,120 in 2014 to 35,390 in 2022 likely contributed to the increased demand for rental properties.
In 2023 and 2024, the housing market in zip code 13027 continued its upward trajectory. The average home price reached $265,976 in 2023 and further increased to $283,642 in 2024, marking a 16.6% rise over two years. This surge occurred despite a significant increase in federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024. These high interest rates, coupled with rising home prices, may further impact homeownership rates in the area.
Looking ahead, predictive models suggest that the upward trend in both average home prices and average rent prices is likely to continue over the next five years. Average home prices could potentially reach or exceed $330,000 by 2029, while average rent prices may surpass $1,200 per month. However, these projections are subject to various economic factors and market conditions.
In summary, zip code 13027 has experienced a gradual decrease in homeownership rates alongside substantial increases in average home prices. The rental market has seen more modest growth in both occupancy and prices. The interplay between federal interest rates, population growth, and housing affordability continues to shape the local real estate landscape, with recent data pointing towards an increasingly competitive housing market in the coming years.
