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Zip Code 14712: Rising Home Values and Ownership in Lakeside Bemus Point, 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 14712, located in Bemus Point, New York, presents an intriguing case study of real estate dynamics in a small community. Over the past decade, this area has experienced fluctuations in homeownership rates, alongside significant changes in average home prices and average rent prices. The overall trend shows a slight increase in homeownership, coupled with substantial growth in average home values.
The homeownership rate in zip code 14712 has shown resilience, with minor fluctuations between 2013 and 2022. In 2013, the homeownership rate stood at 83%, and by 2022, it had increased slightly to 86%. During this period, average home prices saw a remarkable upward trajectory. In 2013, the average home price was $172,168, and by 2022, it had risen to $316,851, representing an impressive 84% increase over nine years. This substantial appreciation in home values did not significantly deter homeownership, suggesting a strong local housing market and potentially favorable economic conditions for residents.
The relationship between federal interest rates and homeownership rates in zip code 14712 appears to follow general economic principles. From 2013 to 2016, when interest rates were extremely low (ranging from 0.11% to 0.40%), homeownership increased from 83% to 88%. As interest rates began to rise more significantly from 2017 onwards, homeownership rates showed some fluctuation but generally remained high. Even with interest rates reaching 1.68% in 2022, the area maintained a robust 86% homeownership rate, indicating a resilient local housing market.
Renter percentages and average rent prices in zip code 14712 have shown an inverse relationship to homeownership trends. In 2013, the renter-occupied rate was 17%, with an average rent of $702. By 2022, the renter percentage had decreased to 14%, while the average rent had increased to $797. This suggests that as homeownership became more prevalent, the rental market experienced some contraction, potentially leading to higher rents for the remaining rental properties. It's worth noting that the population decreased from 3,330 in 2013 to 2,766 in 2022, which may have influenced these dynamics.
In 2023 and 2024, the average home prices in zip code 14712 continued their upward trajectory, reaching $324,292 in 2023 and $336,891 in 2024. This represents a 2.4% increase from 2022 to 2023 and a further 3.9% increase from 2023 to 2024. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, potentially impacting affordability for new homebuyers.
Looking ahead, based on the historical data and current trends, we can project continued growth in average home prices for zip code 14712. Applying a conservative linear regression model, we estimate that average home prices could reach approximately $380,000 by 2029. For average rent prices, assuming a similar growth rate to recent years, we might expect them to increase to around $900 per month by 2029. However, these projections are subject to various economic factors and local market conditions.
In summary, zip code 14712 has demonstrated a robust housing market characterized by high homeownership rates and steadily increasing average home values. Despite rising interest rates and fluctuations in the rental market, the area has maintained strong property values and a preference for homeownership. The continued appreciation of home prices, even in the face of higher interest rates, suggests a desirable living environment with potential for further growth in the real estate market.
