Loading Content...
Zip Code 23188: Rising Home Values and Stable Ownership in Historic Williamsburg
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Zip code 23188 in Williamsburg, Virginia, a historically significant area known for its colonial heritage and the prestigious College of William & Mary, has experienced notable changes in homeownership rates, average home prices, and average rent prices over the past decade. The homeownership rate in zip code 23188 has remained relatively stable, fluctuating between 71% and 74% from 2013 to 2022. During this period, average home prices have shown a consistent upward trend. In 2013, the average home price was $290,139, which steadily increased to $404,559 by 2022, representing a 39.4% increase over nine years. This trend suggests a strong correlation between rising home values and sustained homeownership rates in the area. Federal interest rates have played a significant role in homeownership trends. From 2013 to 2016, when interest rates were exceptionally low (ranging from 0.11% to 0.4%), homeownership rates remained high at 74%. As interest rates began to rise in 2017 (1%) and 2018 (1.83%), there was a slight dip in homeownership to 72%. However, the area maintained relatively high homeownership rates even as interest rates fluctuated, indicating other factors such as local economic conditions and housing demand also influenced homeownership decisions.
Renter percentages in zip code 23188 have shown slight variations, ranging from 24% to 29% between 2013 and 2022. Average rent prices have also fluctuated during this period. In 2013, the average rent was $1,401, which increased to $1,518 by 2016, representing an 8.4% rise. However, rent prices then experienced some volatility, dropping to $1,352 in 2018 before rising again to $1,534 in 2022. This 13.5% increase in average rent from 2018 to 2022 coincided with a population growth from 43,758 to 46,446, suggesting that increased housing demand may have contributed to rising rent prices.
In 2023 and 2024, average home prices in zip code 23188 continued their upward trajectory. The average home price reached $431,917 in 2023 and further increased to $447,653 in 2024, representing a 10.7% rise over two years. This growth occurred despite higher federal interest rates of 5.02% in 2023 and 5.33% in 2024, indicating strong local housing demand and a robust real estate market in the area.
Looking ahead, predictive models suggest that average home prices in zip code 23188 will continue to rise over the next five years, potentially reaching around $525,000 by 2029. Average rent prices are also expected to increase, potentially surpassing $1,700 per month within the same timeframe. These projections are based on historical trends and assume continued population growth and economic stability in the area.
In summary, zip code 23188 in Williamsburg, Virginia, has demonstrated resilient homeownership rates and consistently increasing average home prices over the past decade. Despite fluctuations in federal interest rates and rent prices, the area has maintained a strong housing market. The recent surge in home values, even in the face of higher interest rates, suggests a robust local economy and sustained demand for housing in this historically rich and educationally significant region.
