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Zip Code 14822: Rising Home Values and Ownership Rates in Rural Canaseraga, 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 14822, located in Canaseraga, New York, has experienced significant shifts in homeownership rates and housing prices over the past decade. This rural area has seen a notable trend towards increased homeownership and fluctuating property values, reflecting broader economic changes and local demographic shifts.
The ownership percentage in zip code 14822 has shown a consistent upward trend, rising from 76% in 2013 to 89% in 2022. This substantial increase in homeownership coincided with fluctuations in average home prices. In 2013, the average home price was $64,350, and it decreased slightly to $61,463 by 2016. However, from 2017 onwards, there was a steady increase in average home prices, reaching $96,694 in 2022. This represents a significant 50% increase in average home values over a nine-year period.
The relationship between federal interest rates and homeownership rates in this area is noteworthy. As interest rates remained low, particularly between 2013 and 2016 (ranging from 0.09% to 0.4%), homeownership rates began to climb. The continued low interest rates through 2020 (dropping to 0.38%) likely contributed to the sustained increase in homeownership, reaching 89% by 2022. This trend aligns with the general principle that lower interest rates make home financing more accessible, encouraging higher rates of homeownership.
Conversely, the percentage of renters in zip code 14822 has decreased significantly, from 24% in 2013 to just 11% in 2022. Despite this decline in the renter population, average rent prices have shown considerable volatility. In 2013, the average rent was $729, which increased to $927 by 2016. After some fluctuations, it reached $965 in 2022. This represents a 32% increase in average rent over the decade, despite the shrinking renter population. The increase in rent prices, coupled with the decreasing renter population, suggests a possible shortage of rental properties or an increase in the quality of available rentals.
Looking at the most recent data, the average home price in zip code 14822 for 2023 was $93,636, showing a slight decrease from 2022. However, the projected average home price for 2024 is $95,386, indicating a potential rebound. It's important to note that interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homeownership trends and housing affordability in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 14822 will continue to rise, albeit at a more moderate pace. The average home price is projected to reach approximately $105,000 by 2029. Average rent prices are also expected to increase, potentially reaching around $1,200 per month by 2029. However, these projections may be influenced by various factors, including economic conditions and local housing policies.
In summary, zip code 14822 has experienced a significant shift towards homeownership over the past decade, with a corresponding decrease in the renter population. Average home prices have shown overall growth, particularly since 2017, while rent prices have fluctuated but generally increased. The area has demonstrated resilience in its housing market, with recent data suggesting continued, though more moderate, growth in both home values and rent prices in the coming years.
