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Average Home Values and Ownership in Zip Code 16142: New Wilmington'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 16142, located in New Wilmington, Pennsylvania, presents an interesting case study in homeownership and housing market trends. This area has maintained a relatively stable homeownership rate over the past decade, with slight fluctuations in average home prices and average rent costs. The following analysis will delve into the intricate relationship between these factors and their implications for the local real estate market.
The homeownership rate in zip code 16142 has remained fairly consistent, ranging from 75% to 77% between 2013 and 2022. During this period, average home prices have shown a steady upward trend. In 2013, the average home price was $140,259, which increased to $227,604 by 2022, representing a substantial 62.3% growth over nine years. This rise in home values did not significantly impact homeownership rates, suggesting that the local market remained relatively affordable for existing and new homeowners despite the price increases.
Federal interest rates have played a role in homeownership trends, albeit with a nuanced impact in this zip code. From 2013 to 2015, when interest rates were at historic lows (0.11% to 0.13%), the homeownership rate slightly decreased from 77% to 75%. However, as interest rates began to rise more significantly from 2016 onwards, the homeownership rate remained stable at 75-76%. This suggests that other local factors may have a stronger influence on homeownership in this area than national interest rate trends.
Renter percentages in zip code 16142 have mirrored the homeownership rates, fluctuating between 23% and 25% from 2013 to 2022. Average rent prices have shown some volatility during this period. In 2013, the average rent was $703, which peaked at $818 in 2018 before declining to $639 in 2022. This represents a decrease of 9.1% in average rent from 2013 to 2022, despite a 16.1% decrease in population over the same period (from 7,476 to 6,261 residents). The inverse relationship between population decline and rent prices suggests that other factors, such as local economic conditions or housing supply, may be influencing rental markets in this area.
Looking at the most recent data, average home prices in zip code 16142 continued to rise, reaching $238,546 in 2023 and $246,551 in 2024. This represents a 4.8% increase from 2022 to 2023 and a further 3.4% increase from 2023 to 2024. Concurrently, federal interest rates have also increased significantly, rising to 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homeownership rates and housing affordability in the area.
Applying predictive models to forecast 5-year trends, we anticipate average home prices in zip code 16142 to continue their upward trajectory, potentially reaching around $275,000 to $285,000 by 2029. Average rent prices, which have shown more volatility, may stabilize and potentially increase slightly, reaching approximately $700 to $750 per month in the same timeframe.
In summary, zip code 16142 has demonstrated resilience in homeownership rates despite significant increases in average home prices. The inverse relationship between population decline and average rent prices presents an intriguing dynamic in the local rental market. Moving forward, the area is likely to see continued growth in home values, while rental prices may experience moderate increases. The stability of homeownership rates in the face of rising home prices and interest rates suggests a strong local preference for homeownership, which may continue to characterize this market in the coming years.
