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Average Home Values and Ownership in Zip Code 15342: McGovern'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
McGovern, located in zip code 15342 in Pennsylvania, has experienced significant changes in homeownership rates and housing prices over the past decade. This area has seen a notable increase in homeownership, rising from 80% in 2013 to 87% in 2022, while average home prices have steadily climbed from $148,849 in 2013 to $225,352 in 2022.
The trend between ownership percentage and average home prices in McGovern shows a strong positive correlation. As homeownership rates increased from 80% in 2013 to 87% in 2022, average home prices rose by approximately 51.4% during the same period. This trend suggests that the growing demand for homeownership in the area has contributed to the appreciation of property values. For instance, when homeownership reached 84% in 2018, the average home price was $173,089, and as ownership continued to rise to 87% by 2022, the average home price increased to $225,352.
Federal interest rates have played a significant role in shaping homeownership trends in McGovern. The period from 2013 to 2016 saw historically low interest rates, ranging from 0.11% to 0.40%, which coincided with a stable homeownership rate of 80%. As interest rates began to rise, reaching 1.83% in 2018, homeownership surprisingly increased to 84%, possibly due to residents anticipating further rate hikes and deciding to purchase homes while rates were still relatively low. The sharp drop in interest rates to 0.08% in 2021 corresponded with a peak in homeownership at 88%, demonstrating how lower rates can stimulate home buying activity.
Renter percentages in McGovern have decreased from 20% in 2013 to 13% in 2022, while average rent prices have shown some fluctuation. In 2013, the average rent was $910, which increased to $936 by 2014. However, despite the declining percentage of renters, average rent prices remained relatively stable, reaching $930 in 2022. This stability in rent prices, despite the decreasing renter population, may be attributed to the overall population growth in the area, which increased from 4,490 in 2013 to 5,040 in 2022, potentially maintaining demand for rental properties.
In 2023, the average home price in McGovern reached $225,771, showing a slight increase from the previous year. This trend continued into 2024, with average home prices rising to $233,372. Interestingly, federal interest rates also saw a significant increase, climbing to 5.02% in 2023 and further to 5.33% in 2024. Despite these higher interest rates, which typically discourage home buying, the local housing market has continued to appreciate, suggesting strong underlying demand in the area.
Looking ahead, predictive models forecast a continued upward trend in average home prices for McGovern over the next five years. Based on the historical data and current market conditions, average home prices are expected to increase by approximately 3-5% annually, potentially reaching around $270,000 to $280,000 by 2029. Average rent prices are projected to remain relatively stable with modest annual increases of 1-2%, potentially reaching around $980 to $1,000 by 2029.
In summary, McGovern has demonstrated a robust housing market characterized by increasing homeownership rates and steadily rising average home prices. The area has shown resilience in the face of fluctuating interest rates, with home values continuing to appreciate even during periods of higher rates. The declining renter population, coupled with stable rent prices, suggests a strong preference for homeownership in this community. As the population continues to grow, these trends are likely to persist, making McGovern an attractive area for both homeowners and real estate investors.
