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Zip Code 14305: Rising Home Values and Ownership in Niagara Falls, 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 14305, located in Niagara Falls, New York, has experienced notable shifts in homeownership rates and property values over the past decade. This area, known for its proximity to the famous Niagara Falls, has seen an overall increase in homeownership and average home prices, while average rent prices have fluctuated.
The ownership percentage in zip code 14305 has shown a general upward trend, rising from 55% in 2013 to 60% in 2022. This increase in homeownership coincided with a substantial rise in average home prices. In 2013, the average home price was $49,420, which steadily increased to $115,815 by 2022, representing a remarkable 134% increase over this period. The most significant annual jump occurred between 2020 and 2021, when average home prices surged from $83,119 to $101,231, a 21.8% increase in a single year.
Federal interest rates have played a crucial role in shaping homeownership trends in this zip code. The period from 2013 to 2020 saw historically low interest rates, ranging from 0.09% to 2.16%. These low rates likely contributed to the increase in homeownership, as they made mortgages more affordable. For instance, the ownership rate climbed from 55% in 2013 to 61% in 2020, corresponding with interest rates remaining below 2.5% during this time.
Renter percentages in zip code 14305 have conversely decreased, from 45% in 2013 to 40% in 2022. Interestingly, average rent prices have not shown a consistent trend during this period. The average rent peaked at $815 in 2017 but then declined to $699 by 2022. This decrease in average rent, coupled with the declining percentage of renters, suggests a shift towards homeownership in the area. The population has remained relatively stable, fluctuating between 16,000 and 16,800 residents, which indicates that changes in rental trends are not primarily driven by population shifts.
In 2023, the average home price in zip code 14305 reached $122,676, continuing the upward trend observed in previous years. This represents a 5.9% increase from 2022. Moving into 2024, the average home price has further increased to $129,313, marking a 5.4% rise from 2023. It's worth noting that these price increases have occurred despite a significant jump in federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024. This suggests a strong local housing market that has maintained growth even in the face of higher borrowing costs.
Looking ahead, predictive models forecast continued growth in average home prices for zip code 14305 over the next five years. Based on the historical data and current trends, we can expect average home prices to potentially reach around $160,000 by 2029. However, the rate of increase may moderate compared to the rapid growth seen in recent years. For average rent prices, the forecast suggests a potential stabilization or slight increase, possibly reaching around $750-$800 per month by 2029, assuming economic conditions remain relatively stable.
In summary, zip code 14305 in Niagara Falls has demonstrated a clear 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 rise even as interest rates have increased. The rental market has seen more fluctuation, with a decreasing proportion of renters and variable average rent prices. These trends suggest a growing preference for homeownership in this area, likely driven by a combination of factors including historically low interest rates in the mid-2010s and the overall appreciation of property values.
