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Average Home Values and Ownership in Grove City Zip Code 16127: A Decade of Resilience
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 16127, located in Grove City, Pennsylvania, has experienced notable shifts in homeownership rates and housing prices over the past decade. This area, known for its small-town charm and proximity to Pittsburgh, has seen a general trend of increasing homeownership and rising property values. The ownership percentage in Grove City has shown a gradual increase from 72% in 2013 to 76% in 2019, before settling at 72% in 2022. This trend coincides with a steady rise in average home prices, which increased from $131,860 in 2013 to $198,572 in 2022, representing a significant 50.6% growth over this period. The relationship between homeownership rates and average home prices suggests that despite rising property values, Grove City remained an attractive market for potential homeowners.
Federal interest rates have played a crucial role in shaping homeownership trends in zip code 16127. The period from 2013 to 2016 saw historically low interest rates, hovering around 0.1% to 0.4%, which likely contributed to the increase in homeownership from 72% to 74% during this time. As interest rates began to rise more significantly from 2017 onwards, reaching 1.68% in 2022, the homeownership rate stabilized around 72%, indicating a potential correlation between higher interest rates and a slight cooling in the housing market.
Conversely, the renter percentage in Grove City decreased from 28% in 2013 to 23% in 2019, before returning to 28% in 2022. This trend occurred alongside fluctuations in average rent prices, which rose from $700 in 2013 to a peak of $825 in 2021, before slightly declining to $799 in 2022. The inverse relationship between renter percentages and average rent prices suggests that as rents increased, some residents may have transitioned to homeownership, particularly during periods of lower interest rates and more affordable financing options.
In 2023 and 2024, the average home prices in zip code 16127 continued their upward trajectory, reaching $204,186 in 2023 and $208,708 in 2024. This represents a 2.8% and 2.2% year-over-year increase, respectively. Interestingly, these price increases occurred despite a significant rise in federal interest rates, which stood at 5.02% in 2023 and 5.33% in 2024, indicating a robust local housing market that has remained resilient in the face of higher borrowing costs.
Looking ahead, predictive models suggest that average home prices in zip code 16127 are likely to continue their upward trend over the next five years, albeit at a potentially slower pace due to higher interest rates. Average rent prices are also expected to increase moderately, reflecting ongoing demand for rental properties in the area. However, the rate of increase for both home prices and rents may be tempered by broader economic factors and local market conditions.
In summary, Grove City has demonstrated a resilient housing market characterized by increasing homeownership rates and rising property values over the past decade. The interplay between federal interest rates, homeownership trends, and housing prices has shaped a dynamic real estate landscape in zip code 16127. As the area continues to evolve, it will be crucial to monitor these trends and their impact on the local community and housing market.
