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Average Home Values and Ownership in Zip Code 18629: A Decade of Change in Rural 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 18629, located in Meshoppen, Pennsylvania, showcases an intriguing demographic landscape with notable shifts in homeownership and housing market dynamics over the past decade. This rural area has experienced fluctuations in its population and housing market, reflecting broader economic trends and local factors.
The homeownership rate in zip code 18629 has shown a gradual decline from 2013 to 2022. In 2013, the area boasted an 81% homeownership rate, which decreased to 76% by 2022. This shift coincided with significant changes in average home prices. The average home price in the area rose from $129,585 in 2012 to $209,618 in 2022, representing a substantial 61.8% increase over a decade. This upward trend in home prices, coupled with the declining homeownership rate, suggests that rising property values may have made homeownership less attainable for some residents.
Federal interest rates have played a crucial role in shaping homeownership trends in zip code 18629. The period from 2013 to 2016 saw historically low interest rates, hovering around 0.1% to 0.4%. During this time, homeownership rates remained relatively stable at around 82%. However, as interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, homeownership rates started to decline. This inverse relationship underscores the impact of financing costs on homebuying decisions in the area.
The renter population in zip code 18629 has grown correspondingly with the decline in homeownership. The percentage of renters increased from 18% in 2013 to 24% in 2022. This rise in renter occupancy has been accompanied by a significant increase in average rent prices. In 2013, the average rent was $734, which climbed to $918 by 2022, marking a 25.1% increase. The growing renter population and rising rent prices indicate an increasing demand for rental properties in the area, possibly driven by those priced out of the homebuying market.
Looking at the most recent data, the average home price in zip code 18629 stood at $203,819 in 2023 and decreased to $194,258 in 2024. This represents a 4.7% decline in average home prices over the past year. Concurrently, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024. These high interest rates, combined with the recent dip in home prices, suggest a cooling housing market in the area.
Applying predictive models to forecast 5-year trends, we anticipate a potential stabilization or slight decrease in average home prices in zip code 18629. The current high interest rates may continue to dampen demand, potentially leading to a leveling off or modest decline in property values. For rent prices, the trend suggests a continued steady increase, albeit at a slower pace than seen in previous years. The growing renter population and consistent demand for rental properties are likely to sustain this upward trajectory in rent prices.
In summary, zip code 18629 has experienced a notable shift from homeownership to renting over the past decade, driven by rising home prices and fluctuating interest rates. The recent cooling in the housing market, marked by a slight decline in home prices and high interest rates, suggests a potential rebalancing in the local real estate landscape. As the area continues to evolve, the interplay between homeownership rates, property values, and rental market dynamics will shape the future of housing in this Pennsylvania community.
