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Zip Code 13681: Rising Home Values and Ownership Rates in Rural 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 13681, located in Richville, New York, presents an intriguing case study of homeownership and housing market trends. This rural area has experienced significant shifts in its real estate landscape over the past decade, with notable changes in homeownership rates, average home prices, and average rent prices.
The homeownership rate in zip code 13681 has shown a remarkable upward trend, increasing from 82% in 2013 to 90% in 2022. This rise in homeownership coincides with a steady increase in average home prices. In 2013, the average home price was $83,610, and by 2022, it had risen to $128,370, representing a 53.5% increase over nine years. This positive correlation suggests that despite rising prices, more residents were able to enter the housing market.
Federal interest rates have played a significant role in shaping homeownership trends in zip code 13681. The period from 2013 to 2016 saw historically low interest rates, ranging from 0.09% to 0.40%, which likely contributed to the initial surge in homeownership from 82% to 87%. As interest rates began to rise more significantly from 2017 onwards, reaching 1.68% in 2022, the homeownership rate continued to climb, albeit at a slower pace, reaching 90% in 2022. This suggests that other local factors may have been influential in supporting homeownership growth despite rising interest rates.
The rental market in zip code 13681 has experienced fluctuations in both average rent prices and the percentage of renters. In 2013, 10% of residents were renters, with an average rent of $830. By 2022, the renter percentage remained stable at 10%, but the average rent had decreased to $609, a 26.6% reduction. This decline in average rent prices occurred despite the area's population growth from 1,208 in 2013 to 1,254 in 2022, suggesting an increase in affordable rental options or changes in local economic conditions.
Moving to more recent data, the average home price in zip code 13681 slightly decreased to $127,996 in 2023 but is projected to rise to $133,143 in 2024. This represents a 4% increase from 2023 to 2024. Notably, federal interest rates have significantly increased to 5.02% in 2023 and 5.33% in 2024, which may impact future homeownership trends and housing affordability in the area.
Looking ahead, predictive models suggest that average home prices in zip code 13681 will continue to rise moderately over the next five years, potentially reaching around $150,000 by 2029. This projection is based on the historical growth rate and assumes relatively stable economic conditions. Average rent prices, which have shown a general downward trend, are expected to stabilize and potentially see modest increases, possibly reaching $650-$700 by 2029, as the market adjusts to balance affordability with property values.
In summary, zip code 13681 has demonstrated a strong trend towards homeownership, with rates increasing from 82% to 90% between 2013 and 2022, despite rising average home prices. The area has also seen a decrease in average rent prices, maintaining a stable renter population. With recent increases in federal interest rates and projected growth in average home prices, the local real estate market may face new challenges in maintaining its high homeownership rate while balancing affordability for both buyers and renters.
