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Zip Code 14009: Rising Home Values and Ownership Rates in Arcade, NY
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 14009, located in Arcade, New York, presents an interesting case study of homeownership and housing market trends. This area has experienced notable shifts in ownership percentages and housing prices over the past decade, with a general trend towards increased homeownership and rising property values.
The ownership percentage in zip code 14009 has shown a gradual increase from 75% in 2013 to 78% in 2022. This upward trend in homeownership coincides with a significant rise in average home prices, which grew from $109,261 in 2013 to $186,261 in 2022, representing a 70.5% increase over nine years. The relationship between these two factors suggests that despite rising home prices, the area has remained attractive to potential homeowners, possibly due to other local economic factors or quality of life considerations.
Federal interest rates have played a role in shaping homeownership trends in the area. The period from 2013 to 2016 saw historically low interest rates, ranging from 0.11% to 0.40%, which likely contributed to the initial increase in homeownership from 75% to 77%. As interest rates began to rise more significantly from 2017 onwards, reaching 1.68% by 2022, the homeownership rate in zip code 14009 continued to climb, albeit at a slower pace, reaching 78% in 2022. This suggests that local factors may have outweighed the impact of rising interest rates on homeownership decisions.
Renter percentages in zip code 14009 have inversely mirrored the homeownership trend, decreasing from 25% in 2013 to 22% in 2022. During this period, average rent prices showed an overall upward trend, rising from $622 in 2013 to $743 in 2022, an increase of 19.5%. Interestingly, despite the rising rent prices, the area experienced a slight population decline from 5,441 in 2013 to 5,380 in 2022, which may have contributed to the decrease in renter percentages as some renters potentially transitioned to homeownership or moved out of the area.
In 2023 and 2024, average home prices in zip code 14009 continued their upward trajectory, reaching $190,731 in 2023 and $199,278 in 2024. This represents a 7% increase from 2022 to 2024. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, marking the highest rates in over a decade. Despite these high interest rates, home prices have continued to appreciate, indicating strong demand in the local housing market.
Looking ahead, predictive models suggest that average home prices in zip code 14009 may continue to rise over the next five years, potentially reaching around $225,000 by 2029 if current trends persist. Average rent prices are also expected to increase, potentially surpassing $800 per month within the same timeframe. However, these projections are subject to various economic factors and local market conditions.
In summary, zip code 14009 has demonstrated a resilient housing market with increasing homeownership rates and rising property values over the past decade. The area has maintained its appeal to homeowners despite rising home prices and fluctuating interest rates. The rental market, while experiencing price increases, has seen a decline in the percentage of renters. As the area moves forward, it will be crucial to monitor how these trends evolve, particularly in light of the recent sharp increases in interest rates and continued home price appreciation.
