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Average Home Values and Ownership in Zip Code 19074: Norwood's Housing Market Dynamics
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 19074, located in Norwood, Pennsylvania, has experienced significant changes in homeownership rates, average home prices, and average rent prices over the past decade. This small but densely populated area, covering just 0.75 square miles, has seen a gradual shift in its housing market dynamics.
The homeownership rate in zip code 19074 has shown a declining trend, dropping from 79% in 2017 to 67% in 2022. This decrease in homeownership coincides with a substantial increase in average home prices. In 2017, the average home price was $159,656, which rose to $247,715 by 2022, representing a 55% increase over five years. This inverse relationship suggests that rising home prices may have made homeownership less accessible for some residents.
Federal interest rates have played a role in homeownership trends. In 2017, when interest rates were at 1%, homeownership was at its peak at 79%. As interest rates increased to 1.83% in 2018 and 2.16% in 2019, homeownership began to decline. However, the sharp drop in interest rates to 0.38% in 2020 and 0.08% in 2021 did not reverse the downward trend in homeownership, possibly due to the significant increase in home prices during this period.
As homeownership decreased, the percentage of renters in zip code 19074 increased from 21% in 2017 to 33% in 2022. This rise in renters coincided with an increase in average rent prices. The average rent rose from $1,004 in 2017 to $1,142 in 2022, a 14% increase. However, the growth in rent prices was not as steep as the increase in home prices, which may explain the shift towards renting for some residents.
In 2023 and 2024, the housing market in zip code 19074 continued to evolve. The average home price reached $257,388 in 2023 and further increased to $269,433 in 2024, showing a persistent upward trend. Concurrently, federal interest rates climbed significantly to 5.02% in 2023 and 5.33% in 2024, potentially impacting homebuying decisions.
Looking ahead, predictive models suggest that average home prices in zip code 19074 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 the growing demand for rental properties. However, the rate of increase may moderate as the market adjusts to changing economic conditions.
In summary, zip code 19074 has experienced a notable shift from homeownership to renting, driven by rapidly increasing home prices and fluctuating interest rates. The area has seen substantial growth in both home values and rent prices, with homeownership becoming less prevalent. These trends reflect broader changes in the local housing market and may continue to shape the community's residential landscape in the coming years.
