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Average Home Values and Ownership in Zip Code 18656: A Rural Pennsylvania Housing Market Study
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 18656, located in Pikes Creek, Pennsylvania, is a predominantly rural area spanning 53.14 square miles. This region has experienced notable fluctuations in homeownership rates and housing prices over the past decade, with a generally high rate of owner-occupied homes and steadily increasing average home values.
In 2013, the homeownership rate in zip code 18656 stood at 91%, with an average home price of $160,669. Over the next few years, there was a slight decline in homeownership, reaching 85% in 2017. During this period, average home prices continued to rise, reaching $170,465 in 2017. This inverse relationship suggests that as home prices increased, some residents may have shifted to renting. However, from 2018 onwards, there was a reversal in this trend. Homeownership rates began to climb again, reaching 91% by 2022, while average home prices saw substantial growth, rising to $236,431 in the same year.
The federal interest rate trends appear to have influenced homeownership rates in this area. For instance, the period of extremely low interest rates from 2013 to 2016 (ranging from 0.09% to 0.40%) coincided with relatively stable homeownership rates. As interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), there was a slight dip in homeownership. However, the sharp drop in interest rates in 2020 (0.38%) and 2021 (0.08%) corresponded with an increase in homeownership rates back to 90% and 91% respectively.
Renter percentages in zip code 18656 have generally been low, fluctuating between 8% and 15% from 2013 to 2022. Average rent prices have shown considerable volatility during this period. In 2013, the average rent was $658, rising to a peak of $995 in 2017. This coincided with the lowest homeownership rate of 85%, suggesting increased demand for rentals. Subsequently, average rent prices moderated, dropping to $783 in 2020 before surging to $1,109 in 2021. The most recent data for 2022 shows average rent back at $783, with the renter percentage at a low of 8%.
In 2023, the average home price in zip code 18656 reached $241,991, representing a 2.35% increase from 2022. The federal interest rate for 2023 was 5.02%, significantly higher than previous years. Moving into 2024, the average home price has further increased to $250,696, a 3.6% rise from 2023. The federal interest rate for 2024 stands at 5.33%, continuing the upward trend.
Looking ahead, based on historical trends and current economic indicators, we can expect the average home prices in zip code 18656 to continue their upward trajectory over the next five years. Projecting from the 2024 value of $250,696, we might see average home prices reaching approximately $290,000 to $300,000 by 2029. Rent prices, which have shown more volatility, are harder to predict but could stabilize in the $850 to $950 range, assuming no major economic disruptions.
In summary, zip code 18656 has maintained a high rate of homeownership despite fluctuations in home prices and interest rates. The area has seen consistent growth in average home values, with recent years showing accelerated increases. Rental markets have been more volatile, but generally represent a small portion of the housing landscape in this zip code. The coming years are likely to see continued growth in home values, potentially coupled with stabilization in the rental market.
