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Zip Code 14621: Rising Home Values Amidst Stable Ownership 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 14621, located in Rochester, New York, has experienced significant fluctuations in its housing market over the past decade. This area has shown a delicate balance between homeownership and rental occupancy, with average home prices and rent costs reflecting broader economic trends.
The homeownership rate in zip code 14621 has remained relatively stable, with minor fluctuations between 33% and 36% from 2013 to 2022. Despite this stability, average home prices have shown a remarkable upward trend. In 2013, the average home price was $43,146, which steadily increased to $95,153 by 2022, representing a substantial 120% increase over this period. Notably, the most significant jump occurred between 2020 and 2021, when average home prices surged from $74,737 to $93,302, a 24.8% increase in just one year.
Federal interest rates have played a crucial role in shaping homeownership trends. From 2013 to 2020, interest rates remained historically low, ranging from 0.09% to 2.16%. This period coincided with the steady increase in average home prices, as lower interest rates generally make homeownership more accessible due to reduced borrowing costs. However, the homeownership rate didn't see a significant increase during this time, suggesting that other factors, such as local economic conditions or housing availability, may have influenced ownership decisions in this zip code.
The rental market in zip code 14621 has shown its own distinct trends. The percentage of renters has fluctuated slightly, ranging from 64% to 67% between 2013 and 2022. Average rent prices have generally increased over this period, albeit at a more modest pace compared to home prices. In 2013, the average rent was $839, which increased to $879 by 2022, representing a 4.8% rise. It's worth noting that there was a significant spike in average rent in 2021, reaching $953, before decreasing to $879 in 2022. This trend in rent prices, coupled with the relatively stable renter percentage, suggests a consistent demand for rental properties in the area.
Looking at the most recent data, the average home price in zip code 14621 decreased slightly to $93,736 in 2023 but is projected to rise to $101,213 in 2024. This represents a 7.98% increase from 2023 to 2024. Concurrently, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates could potentially impact homeownership rates and housing affordability in the coming years.
Applying predictive models to forecast 5-year trends, we can anticipate continued growth in average home prices, albeit at a potentially slower rate due to higher interest rates. Average home prices could reach approximately $120,000 by 2029. For rent prices, a steady increase is likely, potentially reaching around $1,000 per month by 2029, assuming current economic conditions and local market factors remain relatively stable.
In summary, zip code 14621 has demonstrated resilience in its housing market, with steadily increasing average home prices despite relatively stable homeownership rates. The rental market has shown more modest growth in prices, maintaining a consistent majority of renters in the area. The recent rise in interest rates and the projected increase in average home prices suggest that the local housing market will continue to evolve, potentially presenting both opportunities and challenges for residents and investors in the coming years.
