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Average Home Values and Ownership in Zip Code 16228: A Decade of Growth in Ford Cliff, Pennsylvania
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 16228, located in Ford Cliff, Pennsylvania, presents an intriguing case study of homeownership and housing market dynamics in a small community. This area has experienced significant fluctuations in ownership percentages and housing prices over the past decade, reflecting broader economic trends and local factors.
The homeownership rate in zip code 16228 has shown a notable increase from 75% in 2019 to 94% in 2022. This substantial rise in homeownership coincided with a significant increase in average home prices. In 2015, the average home price was $66,673, and by 2022, it had risen to $100,008, representing a 50% increase over seven years. This trend suggests that despite rising prices, more residents were able to enter the housing market, possibly due to favorable economic conditions or local factors encouraging homeownership.
Federal interest rates have played a crucial role in shaping homeownership trends in zip code 16228. The period from 2015 to 2020 saw relatively low interest rates, ranging from 0.13% to 0.38%. This low-interest environment likely contributed to the increased homeownership rates observed during this period. As interest rates began to rise in 2022 to 1.68%, we still saw an increase in homeownership to 94%, possibly indicating a rush to purchase homes before rates climbed further.
Conversely, the percentage of renters in zip code 16228 has decreased significantly, from 23% in 2019 to just 6% in 2022. This decline in renters coincided with a substantial increase in average rent prices. In 2013, the average rent was $806 per month, and by 2022, it had risen to $1,261, representing a 56% increase. The sharp decrease in renters despite rising rent prices could be attributed to the shift towards homeownership, possibly driven by the perception of homeownership as a more stable and economically advantageous option in this area.
In 2023 and 2024, the housing market in zip code 16228 continued to show strong growth. The average home price reached $107,563 in 2023 and further increased to $112,528 in 2024. This represents a 12.5% increase from 2022 to 2024. Interestingly, this growth occurred despite a significant rise in federal interest rates, which reached 5.02% in 2023 and 5.33% in 2024. This suggests a robust local housing market that has remained resilient in the face of higher borrowing costs.
Looking ahead, based on the trends observed, we can predict that average home prices in zip code 16228 will continue to rise over the next five years, albeit at a potentially slower rate due to higher interest rates. We might expect average home prices to reach around $130,000 by 2029. Average rent prices are also likely to increase, potentially reaching $1,500 per month by 2029. However, these projections could be influenced by various factors, including local economic conditions and broader market trends.
In summary, zip code 16228 has experienced a significant shift towards homeownership, with a concurrent rise in both home prices and rent costs. The area has shown remarkable resilience in its housing market, with prices continuing to rise even in the face of increasing interest rates. These trends reflect a dynamic local real estate market that has favored homeownership while seeing a decline in the renter population.
