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Average Home Values and Ownership in Zip Code 17403: A Decade of Change in Grantley, Pennsylvania
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 17403, located in Grantley, Pennsylvania, has experienced significant changes in homeownership rates and housing prices over the past decade. This area has transitioned from a predominantly owner-occupied community to one with a growing renter population, while average home prices have shown substantial appreciation, particularly in recent years.
From 2013 to 2022, the percentage of owner-occupied homes in zip code 17403 decreased from 66% to 63%. During this same period, average home prices increased significantly, rising from $119,338 in 2013 to $205,609 in 2022, representing a 72% increase. This inverse relationship suggests that as home prices rose, homeownership became less attainable for some residents, leading to a slight shift towards renting.
The federal interest rates have played a significant role in shaping homeownership trends. From 2013 to 2016, interest rates remained below 0.5%, coinciding with a period of relative stability in homeownership rates, which hovered around 65-66%. As interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, we observed a gradual decline in homeownership rates to 63%. This trend aligns with the general principle that higher interest rates can make mortgages less affordable, potentially discouraging homeownership.
The renter population in zip code 17403 increased from 34% in 2013 to 37% in 2022. Concurrently, average rent prices rose from $1,045 in 2013 to $1,105 in 2022, an increase of about 5.7%. This relatively modest increase in rent prices compared to the substantial rise in home prices may have contributed to the growing renter population. Additionally, the area's population grew from 40,316 in 2013 to 41,786 in 2022, which could have further driven demand for rental properties.
In 2023 and 2024, average home prices in zip code 17403 continued their upward trajectory, reaching $221,379 in 2023 and $232,583 in 2024. This represents a further 13% increase from 2022 to 2024. Notably, federal interest rates also climbed significantly during this period, rising to 5.02% in 2023 and 5.33% in 2024. These higher interest rates, combined with increasing home prices, may further impact homeownership rates in the area.
Looking ahead, based on the observed trends, we can project that average home prices in zip code 17403 may continue to rise over the next five years, potentially reaching around $275,000 by 2029. Average rent prices could also see a moderate increase, possibly approaching $1,250 per month. However, if interest rates remain high, we might see a continued shift towards renting, with the percentage of renters potentially increasing to 40% or more by 2029.
In summary, zip code 17403 has experienced a gradual shift from homeownership to renting, driven by rising home prices and fluctuating interest rates. The substantial appreciation in home values, particularly in recent years, has outpaced the increase in rent prices, potentially making renting a more attractive option for some residents. As the area continues to grow, these trends are likely to shape the housing market dynamics in the coming years.
