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Zip Code 13028: Constantia's Rising Home Values and Ownership Amid Interest Rate Fluctuations
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
Constantia, located in zip code 13028 in New York state, presents an intriguing case study in homeownership and housing market trends. This small community has experienced significant shifts in its housing landscape over the past decade, with notable changes in homeownership rates, average home prices, and average rent prices.
The ownership percentage in Constantia has shown a remarkable upward trend, particularly in recent years. In 2013, the homeownership rate stood at 82%, but by 2022, it had risen dramatically to 94%. This increase coincides with a steady rise in average home prices. In 2013, the average home price was $114,245, and by 2022, it had climbed to $188,386, representing a 64.9% increase over nine years. This correlation suggests that rising property values have not deterred homeownership in the area, possibly indicating strong local economic conditions or a desirable living environment attracting buyers.
Federal interest rates have played a significant role in shaping homeownership trends in Constantia. The period from 2013 to 2020 saw historically low interest rates, ranging from 0.09% to 0.38%. This low-interest environment likely contributed to the increasing homeownership rates observed during this time. As interest rates began to rise more sharply in 2022 (1.68%) and 2023 (5.02%), we see the homeownership rate in Constantia reaching its peak at 94% in 2022, suggesting that residents may have been motivated to purchase homes before rates increased further.
Conversely, the renter population in Constantia has decreased significantly. In 2013, renters made up 18% of the population, but by 2022, this figure had dropped to just 6%. Interestingly, despite this decrease in renter population, average rent prices have shown considerable volatility. In 2013, the average rent was $1,834, which decreased to $958 by 2022, a 47.8% reduction. This decline in average rent prices, coupled with the decreasing renter population, might indicate a shift in housing preferences toward homeownership in the area.
Looking at the most recent data, the average home price in Constantia continued its upward trajectory, reaching $198,580 in 2023 and $208,983 in 2024. This represents a 5.3% and 5.2% year-over-year increase respectively. Concurrently, interest rates have remained elevated, standing at 5.02% in 2023 and 5.33% in 2024. Despite these higher interest rates, the continued rise in home prices suggests ongoing demand for housing in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in Constantia 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 and assumes similar economic conditions persist. For rent prices, the forecast is less certain due to the recent volatility. However, if the trend of decreasing renter population continues, we might see average rent prices stabilize or potentially increase slightly, possibly reaching around $1,100 per month by 2029.
In summary, Constantia has experienced a significant shift towards homeownership, with a 12 percentage point increase from 2013 to 2022. This trend has occurred alongside a substantial rise in average home prices and a decrease in the renter population and average rent prices. The interplay between federal interest rates, homeownership rates, and housing prices demonstrates the complex dynamics of the local real estate market. As we look to the future, the continued rise in home prices and high homeownership rates suggest that Constantia remains an attractive area for residential investment and long-term residency.
