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Average Home Values and Ownership in Zip Code 17061: Steady Growth Amidst Market Fluctuations
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 17061, located in Millersburg, Pennsylvania, is a community that has experienced notable shifts in its housing market over the past decade. This area, spanning 38.78 square miles, has seen fluctuations in homeownership rates and housing prices, reflecting broader economic trends and local market dynamics.
The homeownership rate in zip code 17061 has remained relatively stable, with slight fluctuations between 2013 and 2022. In 2013, the homeownership rate was 72%, which increased to 76% in 2014. However, it then gradually decreased to 71% by 2019 before rising again to 75% in 2022. Concurrently, average home prices have shown a consistent upward trend. In 2013, the average home price was $115,222, which steadily increased to $183,128 by 2022, representing a significant 58.9% increase over this period.
The relationship between federal interest rates and homeownership rates in this area is noteworthy. From 2013 to 2016, when interest rates were extremely low (ranging from 0.11% to 0.4%), homeownership rates remained relatively high, between 72% and 76%. As interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), there was a slight decline in homeownership rates to 71%. However, the sharp drop in interest rates in 2020 (0.38%) and 2021 (0.08%) coincided with an increase in homeownership rates back to 75% by 2022, despite rising home prices.
Renter percentages in zip code 17061 have shown an inverse relationship to homeownership rates, naturally. The percentage of renters increased from 24% in 2014 to 29% in 2019, before decreasing to 25% in 2022. Average rent prices, however, have not followed a consistent trend. In 2013, the average rent was $770, which decreased to $640 by 2017. Since then, there has been a gradual increase, reaching $678 in 2022. This represents a 6% increase from the 2017 low, but still a 12% decrease from the 2013 high.
Looking at the most recent data, the average home price in zip code 17061 for 2023 was $195,167, and for 2024, it is $201,203. This represents a 3.1% increase from 2023 to 2024. Concurrently, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homeownership trends and housing affordability in the area.
Applying predictive models to forecast 5-year trends, we can anticipate continued growth in average home prices, albeit at a potentially slower rate due to higher interest rates. Average home prices could reach around $230,000 by 2029. Rent prices may also see moderate increases, potentially reaching an average of $725-$750 per month in the same timeframe, assuming steady economic conditions and population growth.
In summary, zip code 17061 has demonstrated resilience in its housing market, with consistently high homeownership rates despite fluctuating economic conditions. The area has seen substantial appreciation in home values, while rent prices have remained relatively stable. The interplay between interest rates, home prices, and ownership rates suggests a complex but robust local housing market. Moving forward, the community may face challenges in maintaining affordability, particularly for first-time homebuyers, as prices continue to rise in the face of higher interest rates.
