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Average Home Values and Ownership in Zip Code 17017: Rural Dalmatia'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
The zip code 17017, encompassing the Dalmatia in Pennsylvania, presents a case study of homeownership and housing market trends in a small, rural community. Over the past decade, this area has maintained a consistently high rate of homeownership, while experiencing notable fluctuations in average home prices and average rent costs.
Homeownership in zip code 17017 has remained stable, hovering around 82% from 2013 to 2022. This high rate of owner-occupied housing suggests a deeply rooted community with a strong preference for homeownership. As average home prices increased, the homeownership rate showed resilience. From 2016 to 2022, average home prices rose from $125,685 to $185,426, a 47.5% increase, yet the homeownership rate only fluctuated minimally between 82% and 83%.
The relationship between federal interest rates and homeownership in this zip code appears to defy conventional wisdom. Despite historically low interest rates from 2013 to 2021, ranging from 0.08% to 1.83%, the homeownership rate remained relatively constant. This suggests that factors beyond interest rates, such as local economic conditions or cultural preferences, may play a more significant role in homeownership decisions in this community.
Renter percentages in zip code 17017 have remained consistently low, ranging from 17% to 22% between 2013 and 2022. Average rent prices have shown moderate volatility during this period. In 2013, the average rent was $579, which increased to $643 by 2021, representing an 11% rise. However, rent prices fluctuated within this period, dropping to $568 in 2014 before rising again. The relatively stable renter population, despite these rent fluctuations, suggests a limited rental market in the area, possibly due to the strong preference for homeownership.
In 2023 and 2024, average home prices in zip code 17017 continued their upward trajectory, reaching $192,253 in 2023 before slightly declining to $187,880 in 2024. This represents a 3.7% increase from 2022 to 2023, followed by a 2.3% decrease from 2023 to 2024. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, marking the highest rates since 2007. These higher interest rates may contribute to the slight cooling in home prices observed in 2024.
Looking ahead, predictive models suggest a potential stabilization in average home prices for zip code 17017 over the next five years. Prices are anticipated to hover around the $190,000 mark, with possible minor fluctuations. Average rent prices are projected to continue their gradual upward trend, potentially reaching around $700 by 2029. These projections assume relatively stable economic conditions and no major shifts in local demographics or housing policies.
In summary, zip code 17017 demonstrates a stable housing market characterized by high homeownership rates and gradually increasing property values. The community's resilience to interest rate changes and preference for homeownership sets it apart from many other areas. As we move forward, the interplay between rising interest rates, steady homeownership, and increasing property values will be crucial in shaping the future of this local housing market.
