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Average Home Values and Ownership in Zip Code 17104: A Decade of Shifting Housing Dynamics in Harrisburg
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 17104, located in Harrisburg, Pennsylvania, has experienced significant shifts in homeownership, average home prices, and average rent prices over the past decade. This area, covering 3.89 square miles, has seen a gradual decline in homeownership paired with rising property values and fluctuating rental costs.
The homeownership rate in zip code 17104 has steadily decreased from 44% in 2013 to 37% in 2022. During this same period, average home prices have shown a remarkable upward trend. In 2013, the average home price was $40,440, which rose to $95,281 by 2022, representing a 135% increase over nine years. This inverse relationship between declining homeownership and rising home prices suggests that as properties become more expensive, fewer residents can afford to purchase homes in the area.
Federal interest rates have played a role in shaping homeownership trends in zip code 17104. From 2013 to 2016, when interest rates were extremely low (ranging from 0.11% to 0.40%), homeownership rates remained relatively stable, only dropping from 44% to 42%. However, as interest rates began to rise more significantly from 2017 onwards, reaching 1.68% by 2022, homeownership rates declined more rapidly, falling to 37% by 2022. This trend aligns with the general principle that higher interest rates can make mortgages less affordable, potentially discouraging homeownership.
As homeownership declined, the percentage of renters in zip code 17104 increased from 56% in 2013 to 63% in 2022. Interestingly, average rent prices have not shown a consistent upward trend during this period. In 2013, the average rent was $825, which fluctuated over the years, reaching a low of $782 in 2017 before rising to $830 in 2022. The population of the zip code has remained relatively stable, with 21,692 residents in 2013 and 21,488 in 2022, suggesting that the increase in renters is primarily due to the shift from homeownership rather than a significant influx of new residents.
In 2023 and 2024, the average home prices in zip code 17104 continued to rise, reaching $100,702 in 2023 and $103,621 in 2024. This represents a 5.7% increase from 2022 to 2023 and a further 2.9% increase from 2023 to 2024. Notably, federal interest rates also increased significantly during this period, rising to 5.02% in 2023 and 5.33% in 2024, which are the highest rates seen since 2007.
Looking ahead, based on the observed trends, we can predict that average home prices in zip code 17104 will continue to rise over the next five years, albeit potentially at a slower rate due to higher interest rates. Average home prices could reach approximately $120,000 to $125,000 by 2029. Average rent prices, which have been more volatile, may stabilize or show moderate increases, potentially reaching $900 to $950 per month by 2029.
In summary, zip code 17104 has experienced a significant shift towards a renter-majority population, with homeownership rates declining as average home prices have more than doubled since 2013. The interplay between rising property values, increasing interest rates, and the growing preference for renting has reshaped the housing landscape in this Harrisburg neighborhood. As these trends continue, the area may face challenges in maintaining affordable housing options for its residents.
