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Zip Code 13438: Rising Home Values and Strong Ownership in Prospect, 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 13438, located in Prospect, New York, presents an interesting case study in homeownership and housing market trends. This area has experienced notable shifts in ownership rates and housing prices over the past decade, reflecting broader economic patterns and local market dynamics. The homeownership rate in zip code 13438 has shown remarkable stability, with a slight upward trend over the years. In 2013, the area had an 83% homeownership rate, which increased to 86% by 2018. However, there was a slight decrease to 84% in 2022. This high rate of homeownership has persisted despite fluctuations in average home prices. The average home price in 2013 was $112,039, which steadily increased to $191,607 by 2022, representing a substantial 71% increase over this period.
The relationship between federal interest rates and homeownership rates in this area is noteworthy. Despite historically low interest rates from 2013 to 2016 (ranging from 0.09% to 0.4%), the homeownership rate remained relatively stable. Interestingly, the highest homeownership rate of 86% was observed in 2017 and 2018 when interest rates began to rise (1% in 2017 and 1.83% in 2018). This suggests that factors beyond interest rates, such as local economic conditions or housing supply, may have played a significant role in homeownership decisions in this area.
Renter percentages in zip code 13438 have remained relatively low, fluctuating between 14% and 19% from 2013 to 2022. The average rent prices have shown moderate increases over this period. In 2013, the average rent was $787, which increased to $848 by 2022, representing an 8% increase. It's worth noting that the highest average rent of $919 was recorded in 2019, coinciding with a peak in the area's population of 3,534 residents. The subsequent decrease in population to 3,184 in 2022 may have contributed to the moderation in rent prices.
Looking at the most recent data, the average home price in zip code 13438 continued its upward trajectory, reaching $196,333 in 2023 and $205,672 in 2024. This represents a 7.3% 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 could potentially impact future homeownership rates and housing affordability in the area.
Applying predictive models to forecast 5-year trends, we anticipate continued growth in average home prices, albeit at a potentially slower rate due to higher interest rates. Average home prices could reach approximately $230,000 to $240,000 by 2029. Average rent prices are expected to follow a similar upward trend, potentially reaching $900 to $950 by 2029, assuming consistent economic conditions and population trends.
In summary, zip code 13438 has maintained a high homeownership rate despite significant increases in average home prices. The area has shown resilience in its housing market, with steady growth in property values and moderate increases in rent prices. The impact of rising interest rates on homeownership and housing affordability will be a key factor to watch in the coming years, potentially influencing the balance between owners and renters in this community.
