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Average Home Values and Ownership in Spring Hill: Zip Code 15946's Resilient Housing Market
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 15946, located in Spring Hill, Pennsylvania, has shown interesting trends in homeownership and housing prices over the past decade. This area has experienced a gradual increase in homeownership rates, coupled with fluctuations in average home prices and rent values.
The ownership percentage in zip code 15946 has steadily increased from 79% in 2013 to 83% in 2022. This upward trend in homeownership coincides with a general increase in average home prices. In 2016, the average home price was $100,639, which rose to $126,280 by 2022, representing a 25.5% increase over six years. This correlation suggests that despite rising home prices, more residents in the area have been able to transition into homeownership.
Federal interest rates have played a significant role in shaping homeownership trends in zip code 15946. From 2013 to 2020, interest rates remained relatively low, ranging from 0.09% to 2.16%. This period of low interest rates coincided with the increase in homeownership from 79% to 83%. Lower interest rates typically make mortgages more affordable, encouraging more people to buy homes. The slight dip in homeownership to 82% in 2018 could be attributed to the interest rate increase to 1.83% that year.
Conversely, the percentage of renters in zip code 15946 has decreased from 21% in 2013 to 17% in 2022. Interestingly, average rent prices have shown some volatility during this period. The average rent was $589 in 2013, dropped to $577 in 2020, then sharply increased to $718 in 2021, before falling back to $581 in 2022. This fluctuation in rent prices, particularly the spike in 2021, could be attributed to various factors including changes in local economic conditions or housing supply constraints.
In 2023, the average home price in zip code 15946 reached $127,140, showing a slight increase from the previous year. However, in 2024, there has been a significant drop to $115,914, a decrease of about 8.8%. This decline coincides with a substantial increase in federal interest rates, which rose to 5.02% in 2023 and further to 5.33% in 2024. These higher interest rates likely contributed to the cooling of the housing market and the decrease in average home prices.
Looking ahead, based on the observed trends and current economic conditions, we can project some potential scenarios for the next five years. Average home prices in zip code 15946 may continue to face downward pressure in the short term due to high interest rates. However, if interest rates stabilize or decrease, we might see a gradual recovery in home prices. For rent prices, we may see a period of stability or modest increases, especially if the trend of decreasing renter population continues.
In summary, zip code 15946 has demonstrated a clear trend towards increased homeownership over the past decade, despite rising home prices. The recent sharp increase in interest rates has led to a significant drop in average home prices, highlighting the strong influence of monetary policy on the local housing market. The rental market has shown more volatility, with recent trends suggesting a potential stabilization in both renter population and rent prices.
