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Zip Code 14616: Rising Home Values and Shifting Ownership Trends in Rochester, 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 14616, located in Rochester, New York, has experienced notable shifts in homeownership rates and property values over the past decade. This area has seen a general trend of decreasing homeownership, coupled with rising average home prices and average rent costs.
The ownership percentage in zip code 14616 has shown a gradual decline from 74% in 2013 to 73% in 2022. During this same period, average home prices have increased significantly. In 2013, the average home price was $97,320, which rose to $166,460 by 2022, representing a 71% increase over nine years. This inverse relationship between homeownership rates and average home prices suggests that rising property values may be making homeownership less accessible for some residents in the area.
Federal interest rates have played a role in homeownership trends. From 2013 to 2016, when interest rates were extremely low (ranging from 0.11% to 0.4%), homeownership rates remained relatively stable at around 73-74%. However, as interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, homeownership rates showed a slight decline to 73%. This trend aligns with the general principle that lower interest rates tend to encourage homeownership due to more affordable financing options.
The percentage of renters in zip code 14616 has increased from 26% in 2013 to 27% in 2022. Concurrently, average rent prices have also risen, from $1,051 in 2013 to $1,083 in 2022, an increase of about 3%. The population in the zip code has remained relatively stable during this period, with 27,372 residents in 2013 and 26,992 in 2022. The slight increase in the renter population, coupled with rising rent prices, suggests a growing demand for rental properties in the area.
In 2023 and 2024, the upward trend in average home prices continued, reaching $179,075 in 2023 and $191,570 in 2024. This represents a further increase of 15% from 2022 to 2024. Notably, federal interest rates also rose significantly during this period, reaching 5.02% in 2023 and 5.33% in 2024, which may impact future homeownership rates.
Looking ahead, based on the observed trends, we can predict that average home prices in zip code 14616 will continue to rise over the next five years, potentially reaching around $230,000 by 2029. Average rent prices are also likely to increase, possibly surpassing $1,200 per month within the same timeframe. These projections assume a continuation of current economic conditions and local market factors.
In summary, zip code 14616 has experienced a gradual shift towards renting, with homeownership rates slightly decreasing as average home prices have risen substantially. The interplay between federal interest rates, property values, and rental market dynamics has shaped the housing landscape in this Rochester neighborhood, pointing towards a future of potentially higher housing costs and a more competitive rental market.
