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Average Home Values and Ownership in Zip Code 17222: A Decade of Growth and Stability
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 17222, located in Fayetteville, Pennsylvania, has experienced significant changes in its housing market over the past decade. This area, covering 61.17 square miles, has seen fluctuations in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market dynamics.
The homeownership rate in zip code 17222 has shown a slight overall decline from 2013 to 2022, with some fluctuations. In 2013, the homeownership rate stood at 85%, gradually decreasing to 79% in 2018, before rebounding to 84% in 2022. This trend coincides with changes in average home prices, which have seen a substantial increase over the same period. In 2013, the average home price was $158,035, rising steadily to reach $242,315 in 2022, representing a 53% increase over nine years.
Federal interest rates have played a significant role in shaping homeownership trends in zip code 17222. The period from 2013 to 2016 saw historically low interest rates, ranging from 0.11% to 0.4%, which likely contributed to the relatively high homeownership rates during this time. As interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, there was a slight decrease in homeownership rates, although they remained relatively high at 84% in 2022.
The renter population in zip code 17222 has shown an inverse relationship to homeownership rates, naturally increasing as homeownership decreased. The percentage of renters rose from 15% in 2013 to a peak of 21% in 2018, before settling at 16% in 2022. Average rent prices have generally increased over this period, starting at $850 in 2013 and reaching $1,045 in 2022, a 23% increase. This rise in rent prices coincided with population growth, from 10,998 in 2013 to 11,257 in 2022, potentially indicating increased demand for rental properties.
In 2023 and 2024, the housing market in zip code 17222 continued to evolve. The average home price rose to $255,753 in 2023 and further increased to $263,568 in 2024, representing a 5.5% and 3% year-over-year increase, respectively. Concurrently, federal interest rates climbed significantly, reaching 5.02% in 2023 and 5.33% in 2024, marking the highest rates in over a decade.
Looking ahead, predictive models suggest that average home prices in zip code 17222 may continue to rise over the next five years, albeit at a potentially slower rate due to higher interest rates. Average rent prices are also expected to increase, driven by ongoing demand and the overall trend of rising housing costs. However, the rate of increase for both home prices and rents may moderate compared to the rapid growth seen in recent years.
In summary, zip code 17222 has demonstrated a resilient housing market with a strong preference for homeownership. Despite fluctuations, homeownership rates have remained high, even as average home prices have significantly increased. The rental market has shown steady growth in both occupancy and prices, reflecting the area's population growth and changing economic conditions. The recent sharp rise in interest rates may impact future trends, potentially slowing the rate of home price appreciation and affecting the balance between homeownership and renting in the coming years.
