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Average Home Values and Ownership in Zip Code 17101: A Decade of Change in Harrisburg's Urban Core
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 17101, located in Harrisburg, Pennsylvania, encompasses a compact area of 1.16 square miles. This urban core has experienced significant changes in homeownership rates and housing prices over the past decade, reflecting broader economic trends and local market dynamics.
The homeownership rate in zip code 17101 has shown a notable decline from 2013 to 2022. In 2013, 12% of housing units were owner-occupied, but by 2022, this figure had dropped to just 8%. This downward trend in homeownership coincides with a substantial increase in average home prices. In 2017, the average home price in the area was $118,033. By 2022, it had risen to $165,418, representing a 40% increase over five years.
The inverse relationship between homeownership rates and average home prices can be partially explained by the fluctuations in federal interest rates. From 2013 to 2016, interest rates remained very low, hovering around 0.1-0.4%. During this period, homeownership rates were relatively stable. However, as interest rates began to rise from 2017 (1%) to 2019 (2.16%), homeownership rates started to decline more rapidly. This trend suggests that rising interest rates may have made homeownership less affordable for many residents in the area.
Renter occupancy in zip code 17101 has increased from 88% in 2013 to 92% in 2022, inversely mirroring the decline in homeownership. Interestingly, average rent prices have not shown a consistent upward trend despite the increasing demand for rental properties. In 2013, the average rent was $799, and it fluctuated over the years, reaching $879 in 2022. This relatively modest increase in rent prices, compared to the sharp rise in home values, may have contributed to the growing preference for renting in this area.
The population of zip code 17101 has also grown significantly, from 2,247 in 2013 to 2,852 in 2022, a 27% increase. This population growth, coupled with the rising average home prices, suggests a growing demand for housing in the area, which may be putting additional pressure on both the rental and ownership markets.
In 2023 and 2024, the average home prices in zip code 17101 continued to rise, reaching $173,340 in 2023 and $185,238 in 2024. This represents a further 12% increase from 2022 to 2024. Concurrently, federal interest rates have also increased significantly, reaching 5.02% in 2023 and 5.33% in 2024. These high interest rates may continue to impact homeownership rates in the area.
Looking ahead, based on the observed trends, we can predict that average home prices in zip code 17101 will continue to rise over the next five years, potentially reaching around $220,000 by 2029. However, the rate of increase may slow down due to the high interest rates, which could dampen demand. Average rent prices are likely to see more modest increases, potentially reaching around $950 by 2029, as the rental market continues to absorb the growing population and those priced out of homeownership.
In summary, zip code 17101 has experienced a significant shift towards renting, driven by rising home prices and interest rates. The area's growing population and increasing housing costs suggest a dynamic and competitive housing market, with potential challenges for affordability in both the rental and ownership sectors in the coming years.
