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Zip Code 14478: Rising Home Values and Shifting Ownership in Keuka Park
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 14478, located in Keuka Park, New York, has experienced notable fluctuations in homeownership rates and housing prices over the past decade. This area, known for its proximity to Keuka Lake, has seen interesting trends in its real estate market, reflecting both local and national economic factors.
The homeownership rate in zip code 14478 has shown a general downward trend since 2015, despite some fluctuations. In 2015, the area boasted a high 91% homeownership rate, which gradually decreased to 75% by 2022. This decline coincided with a significant increase in average home prices, rising from $292,593 in 2015 to $487,946 in 2022, representing a 66.8% increase over seven years. The inverse relationship between homeownership rates and average home prices suggests that rising property values may have made homeownership less attainable for some residents.
Federal interest rates have played a role in shaping homeownership trends in the area. The period from 2015 to 2021 saw historically low interest rates, ranging from 0.13% to 1.68%. Despite these favorable borrowing conditions, the homeownership rate in zip code 14478 continued to decline, indicating that other factors, such as rapidly increasing home prices, may have outweighed the benefits of low interest rates for potential buyers.
Renter percentages in the area have shown an overall increase, mirroring the decline in homeownership. The renter-occupied percentage rose from a low of 2% in 2018 to 25% in 2022. Interestingly, average rent prices have fluctuated during this period, with no clear upward trend. The average rent peaked at $880 in 2018 and then decreased to $759 in 2022, despite the increasing renter population. This suggests that the rental market in zip code 14478 may be influenced by factors beyond simple supply and demand, possibly including local economic conditions or changes in the types of rental properties available.
In 2023 and 2024, the average home prices in zip code 14478 continued their upward trajectory, reaching $519,183 in 2023 and $533,210 in 2024. This represents a further 9.3% increase from 2022 to 2024. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, marking a substantial increase from the near-zero rates of the early 2020s. These higher interest rates, combined with elevated home prices, are likely to impact affordability and could influence future homeownership trends in the area.
Looking ahead, based on the observed trends and current market conditions, we can project potential scenarios for the next five years. Average home prices in zip code 14478 may continue to rise, albeit at a potentially slower rate due to higher interest rates. A conservative estimate might suggest an annual increase of 3-5%, which could put the average home price in the range of $618,000 to $680,000 by 2029. Average rent prices, which have shown more volatility, might stabilize or increase moderately, possibly reaching $800-$850 per month by 2029, assuming local economic conditions remain stable and demand for rentals continues.
In summary, zip code 14478 has experienced a significant shift in its housing market dynamics over the past decade. The area has seen a decline in homeownership rates concurrent with substantial increases in average home prices. The rental market has grown, but with fluctuating rent prices. Recent sharp increases in interest rates, combined with continued home price appreciation, suggest that the local real estate market may face challenges in terms of affordability and accessibility in the coming years.
