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Zip Code 14787: Rising Home Values and Shifting Ownership in Westfield, 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 14787, located in Westfield, New York, presents an intriguing case study of housing market dynamics. This rural area has experienced significant shifts in homeownership rates and property values over the past decade. The overall trend shows a slight decline in homeownership, coupled with a substantial increase in average home prices and average rent costs.
The homeownership rate in zip code 14787 has fluctuated over the years, with a general downward trend. In 2013, the area boasted a 77% homeownership rate. However, by 2022, this figure had decreased to 71%. This decline coincided with a remarkable increase in average home prices. In 2013, the average home price was $88,566. By 2022, it had risen dramatically to $150,994, representing a 70.5% increase over nine years. This 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 significant role in shaping homeownership trends in zip code 14787. The period from 2013 to 2016 saw historically low interest rates, hovering around 0.1% to 0.4%. During this time, homeownership rates remained relatively stable, ranging from 73% to 77%. However, as interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, homeownership rates showed a slight decline. This trend aligns with the general principle that lower interest rates tend to encourage homeownership by making mortgages more affordable.
The rental market in zip code 14787 has also experienced notable changes. The percentage of renters increased from 23% in 2013 to 29% in 2022. This shift corresponded with a significant rise in average rent prices. In 2013, the average rent was $521 per month. By 2022, it had climbed to $660, representing a 26.7% increase. The rising rent prices, coupled with the increase in the renter population, suggest a growing demand for rental properties in the area. This trend may be partially attributed to the declining affordability of homeownership.
In 2023 and 2024, the housing market in zip code 14787 continued its upward trajectory. The average home price reached $159,773 in 2023 and further increased to $166,828 in 2024. This represents a 10.5% increase from 2022 to 2024. Concurrently, federal interest rates rose significantly, reaching 5.02% in 2023 and 5.33% in 2024. These high interest rates may further impact homeownership trends in the area.
Looking ahead, predictive models suggest that average home prices in zip code 14787 are likely to continue their upward trend over the next five years. Based on historical data and current market conditions, average home prices could potentially reach $190,000 to $200,000 by 2029. Average rent prices are also expected to increase, potentially reaching $750 to $800 per month in the same timeframe. However, these projections are subject to various economic factors and market conditions.
In summary, zip code 14787 has witnessed a gradual shift towards renting, with homeownership rates declining from 77% to 71% between 2013 and 2022. This trend has occurred alongside substantial increases in both average home prices and average rent costs. The interplay between federal interest rates, property values, and housing affordability continues to shape the local real estate landscape. As the area moves forward, it will be crucial to monitor these trends and their impact on the community's housing market.
