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Zip Code 14873: Rising Home Values and Ownership Rates in Rural New York
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 14873, located in Prattsburgh, New York, presents an interesting case study of homeownership and housing market trends. This rural area has experienced significant fluctuations in population density and housing dynamics over the past decade. The overall trend shows a steady increase in homeownership rates, coupled with rising average home prices and average rent costs.
The homeownership rate in zip code 14873 has shown a notable upward trend, increasing from 82% in 2013 to 87% in 2022. This growth in homeownership coincided with a substantial rise in average home prices, which increased from $90,782 in 2013 to $144,507 in 2022, representing a 59.2% increase over nine years. The relationship between homeownership and home prices appears to be positive, with both metrics generally rising together. This trend suggests that despite increasing prices, residents in this area have maintained a strong preference for homeownership.
Federal interest rates have played a significant role in shaping homeownership trends in zip code 14873. The period from 2013 to 2016 saw historically low interest rates, ranging from 0.09% to 0.4%, which likely contributed to the increase in homeownership from 82% to 87% during this time. As interest rates began to rise more significantly from 2017 onwards, reaching 1.68% in 2022, the homeownership rate remained relatively stable, fluctuating between 87% and 90%. This resilience in homeownership rates despite rising interest rates indicates a strong local preference for owning rather than renting.
The renter population in zip code 14873 has experienced a corresponding decline as homeownership increased. The percentage of renters decreased from 18% in 2013 to 13% in 2022. Despite this decline, average rent prices have shown a significant upward trend, rising from $638 in 2013 to $1,058 in 2022, an increase of 65.8%. This increase in average rent prices, despite a shrinking renter population, could be attributed to factors such as improved rental property quality or a limited supply of rental units in the area.
In 2023 and 2024, the housing market in zip code 14873 continued to evolve. The average home price reached $150,564 in 2023 and further increased to $151,860 in 2024, showing a continued upward trajectory. This growth occurred despite a significant increase in federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024. These higher interest rates typically make mortgages more expensive, yet the local housing market has remained robust, indicating strong demand for homes in this area.
Looking ahead, predictive models suggest that the upward trend in both average home prices and average rent prices is likely to continue over the next five years. Average home prices are projected to increase by approximately 3-5% annually, potentially reaching around $175,000 to $180,000 by 2029. Average rent prices are expected to follow a similar trajectory, potentially rising to $1,200 to $1,300 per month in the same timeframe.
In summary, zip code 14873 has demonstrated a strong preference for homeownership, with rates increasing despite rising home prices and fluctuating interest rates. The area has seen significant growth in both average home values and average rent prices, outpacing many national averages. These trends, combined with the area's resilience to rising interest rates, suggest a robust and desirable local housing market. The continued increase in housing costs, both for buyers and renters, indicates sustained demand for housing in this rural New York community.
