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Average Home Values and Ownership in Zip Code 19063: Lima's Shifting Housing Landscape
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
Lima, located in zip code 19063 in Pennsylvania, has experienced notable shifts in homeownership rates and housing prices over the past decade. This area has seen a gradual increase in population, reaching 40,572 residents in 2022, which has influenced the local housing market dynamics.
The homeownership rate in Lima has shown a slight decline over the years, dropping from 72% in 2018 to 68% in 2022. This trend coincides with a significant increase in average home prices. In 2013, the average home price was $337,614, which steadily rose to $538,202 by 2022, representing a 59.4% increase over nine years. This inverse relationship suggests that rising home prices may have made homeownership less attainable for some residents.
Federal interest rates have played a role in homeownership trends. From 2013 to 2016, when interest rates were extremely low (ranging from 0.11% to 0.4%), homeownership rates in Lima remained stable at around 70-71%. However, as interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), we see a slight decrease in homeownership rates, dropping to 69% by 2020. This trend aligns with the general principle that higher interest rates can make mortgages less affordable, potentially discouraging homeownership.
The renter population in Lima has increased from 28% in 2017 to 32% in 2022. This rise in renters correlates with an increase in average rent prices. In 2013, the average rent was $1,373, which grew to $1,719 by 2022, a 25.2% increase. The growing renter population and rising rent prices may be attributed to the increasing overall population and the challenges of homeownership due to rising home prices.
As of 2024, the average home price in Lima has reached $595,788, marking a 10.7% increase from 2022. This continued upward trend in home prices is occurring alongside a federal interest rate of 5.33% in 2024, which is significantly higher than the rates seen in the previous decade. The high interest rates coupled with rising home prices may further impact homeownership rates in the area.
Looking ahead, based on the observed trends, we can predict that average home prices in Lima will continue to rise, potentially reaching around $700,000 by 2029. Average rent prices are also expected to increase, possibly surpassing $2,000 per month within the next five years. These projections assume a continuation of current economic conditions and housing market trends.
In summary, Lima has experienced a gradual shift towards a higher percentage of renters, coinciding with substantial increases in both average home prices and rent. The interplay between federal interest rates, population growth, and housing affordability has shaped these trends. As home prices continue to rise, it may become increasingly challenging for residents to transition from renting to homeownership, potentially leading to a further increase in the renter population in the coming years.
