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Average Home Values and Ownership in Sheffield: Zip Code 16347's Rural Housing Trends
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 16347, located in Sheffield, Pennsylvania, has experienced significant demographic and housing market changes over the past decade. This rural area has seen fluctuations in homeownership rates and housing prices, reflecting broader economic trends and local market conditions.
The homeownership rate in zip code 16347 has remained relatively stable, with slight fluctuations between 77% and 83% from 2013 to 2022. During this period, average home prices have shown a notable upward trend. In 2016, the average home price was $49,443, which increased to $70,047 by 2022, representing a substantial 41.7% growth over six years. This rise in home values has occurred despite a declining population, which decreased from 2,783 in 2016 to 1,832 in 2022.
Federal interest rates have played a significant role in shaping homeownership trends in the area. From 2013 to 2016, when interest rates were exceptionally low (ranging from 0.09% to 0.4%), homeownership rates remained high, between 77% and 83%. As interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), homeownership rates showed resilience, maintaining around 80-82%. This suggests that other local factors, such as employment opportunities or housing availability, may have influenced homeownership decisions alongside interest rates.
Renter percentages in zip code 16347 have fluctuated between 17% and 23% from 2013 to 2022. Interestingly, average rent prices have shown volatility during this period. In 2013, the average rent was $568, which decreased to $485 in 2015 before rising again to $567 in 2022. This represents a modest 0.18% decrease over the nine-year period, despite the significant population decline from 2,962 in 2013 to 1,832 in 2022. The relative stability in rent prices, despite population decrease, might indicate a tightening rental market or limited rental inventory in the area.
In 2023, the average home price in zip code 16347 reached $72,565, continuing the upward trend observed in previous years. This increase occurred alongside a substantial rise in federal interest rates to 5.02% in 2023. Moving into 2024, the average home price has further increased to $81,762, marking a 12.7% jump from the previous year. This growth is particularly notable given that interest rates have climbed to 5.33% in 2024, suggesting strong local demand for housing despite higher borrowing costs.
Looking ahead, based on the observed trends and current market conditions, we can project continued growth in average home prices for zip code 16347 over the next five years. Assuming a conservative annual growth rate of 5%, we might expect average home prices to reach approximately $104,000 by 2029. Rent prices, which have shown more volatility, are harder to predict. However, if the trend of the past few years continues, we might see average rents stabilize around $600-$650 per month over the next five years, barring any significant changes in local economic conditions or housing policies.
In summary, zip code 16347 has demonstrated resilience in its housing market despite population decline. The area has maintained stable homeownership rates while experiencing significant growth in average home values. The rental market has shown more volatility but has generally kept pace with inflation. The continued rise in home prices, even in the face of higher interest rates, suggests a robust local housing market with potential for further growth in the coming years.
