Loading Content...
Average Home Values and Ownership in Zip Code 17036: Hershey's Sweet Spot for Real Estate
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Zip code 17036, encompassing Hershey, Pennsylvania, is known for its sweet association with the famous chocolate manufacturer. This area has experienced notable shifts in homeownership and housing prices over the past decade, reflecting broader economic trends and local market dynamics. The homeownership rate in Hershey has remained relatively stable, with slight fluctuations between 2013 and 2022. In 2013, the homeownership rate stood at 72%, and by 2022, it had decreased slightly to 71%. During this period, average home prices in the area saw a significant increase. In 2013, the average home price was $212,935, and by 2022, it had risen to $326,518, representing a substantial 53.3% increase over nine years.
The relationship between federal interest rates and homeownership rates in Hershey shows some correlation. From 2013 to 2016, when interest rates were at historic lows (ranging from 0.11% to 0.4%), homeownership rates remained steady at 72%. As interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), there was a slight increase in homeownership to 74% in 2017 and 2018, before returning to 72% in 2019. This suggests that while low interest rates generally support homeownership, other local factors also play a significant role in this market.
Renter percentages in Hershey have shown minor fluctuations, complementing the homeownership trends. The percentage of renters decreased from 28% in 2013 to 26% in 2017, before increasing back to 29% by 2022. Average rent prices have generally increased over this period, rising from $1,238 in 2013 to $1,296 in 2022, an increase of 4.7%. It's worth noting that the population of Hershey grew from 24,408 in 2013 to 25,097 in 2022, potentially contributing to the demand for rental properties.
In 2023 and 2024, the housing market in Hershey continued its upward trajectory. The average home price reached $344,685 in 2023 and further increased to $356,612 in 2024. This represents a 9.2% increase from 2022 to 2024. Concurrently, federal interest rates rose significantly, reaching 5.02% in 2023 and 5.33% in 2024, which may impact future homeownership trends and housing affordability in the area.
Looking ahead, based on the historical data and current trends, we can predict that average home prices in Hershey are likely to continue rising over the next five years, albeit potentially at a slower rate due to higher interest rates. Average rent prices may also see moderate increases, driven by population growth and potential shifts towards renting if homeownership becomes less affordable due to rising prices and interest rates.
In summary, Hershey has maintained a relatively stable homeownership rate despite significant increases in average home prices. The rental market has shown resilience with modest price increases. The recent sharp rise in interest rates, coupled with continued home price appreciation, may reshape the housing market dynamics in this area in the coming years, potentially favoring the rental market if homeownership becomes less accessible.
