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Zip Code 13077: Rising Home Values and Ownership Rates Amid Unique Rental Price Volatility
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 13077, located in Homer, New York, presents an intriguing case study of homeownership and housing market trends. This area has experienced significant fluctuations in both ownership percentages and housing prices over the past decade. The overall trend shows an increase in homeownership rates, coupled with a steady rise in average home prices, while average rent prices have shown more volatility.
The homeownership rate in zip code 13077 has seen a notable increase from 2013 to 2022. In 2013, 78% of housing units were owner-occupied. This percentage dipped to a low of 71% in 2017 before rebounding and reaching 82% by 2022. This upward trend in homeownership coincides with a consistent increase in average home prices. In 2013, the average home price was $123,220, which steadily climbed to $195,024 by 2022, representing a substantial 58.3% increase over this period.
The relationship between federal interest rates and homeownership rates in this zip code shows an interesting pattern. Despite historically low interest rates from 2013 to 2021 (ranging from 0.08% to 2.16%), homeownership rates initially decreased before rebounding. This suggests that other local factors may have influenced homeownership decisions more strongly than interest rates during this period. However, the sharp increase in homeownership from 78% in 2019 to 82% in 2022 coincided with interest rates remaining relatively low, potentially indicating a delayed response to favorable borrowing conditions.
Renter percentages in zip code 13077 have inversely mirrored the homeownership trends, decreasing from 22% in 2013 to 18% in 2022. Interestingly, average rent prices have shown significant fluctuations during this period. In 2013, the average rent was $833, which decreased to $763 in 2014 before rising again. The most notable increase occurred between 2020 and 2021, when average rent jumped from $856 to $1,138, a 32.9% increase. However, this spike was short-lived, as rent prices dropped back to $858 in 2022. These fluctuations in rent prices, coupled with the decreasing renter population, suggest a complex rental market influenced by various factors including housing availability and local economic conditions.
In 2023 and 2024, the housing market in zip code 13077 continued its upward trajectory. The average home price reached $202,886 in 2023 and further increased to $207,418 in 2024, representing a 4% rise over these two years. This growth occurred despite a significant increase in federal interest rates, which rose 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 this area.
Looking ahead, predictive models forecast a continued increase in average home prices for zip code 13077 over the next five years, albeit at a potentially slower rate due to higher interest rates. Average rent prices are expected to stabilize and potentially show moderate growth, aligning with the area's increasing property values. However, the rental market may remain more volatile compared to the homeownership market.
In summary, zip code 13077 has demonstrated a strong trend towards increased homeownership and rising property values over the past decade. The area has shown resilience in its housing market, with home prices continuing to appreciate even in the face of rising interest rates. The rental market, while more volatile, has also shown overall growth. These trends suggest a robust and dynamic housing market in this New York village, with a clear preference for homeownership among its residents.
