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Average Home Values and Ownership in Zip Code 19301: Paoli's Shifting Real Estate 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
Paoli, situated in zip code 19301 in Pennsylvania, has undergone significant transformations in homeownership rates and property values over the past decade. This suburban area has demonstrated a trend of increasing homeownership and rising average home prices, while average rent prices have shown fluctuations. The homeownership rate in Paoli has experienced a notable increase from 73% in 2013 to 80% in 2022. This upward trend in homeownership coincides with a substantial rise in average home prices. In 2013, the average home price was $351,584, which steadily increased to $536,428 by 2022, representing a 52.6% increase over this period. The most significant annual jump occurred between 2020 and 2021, with average home prices rising from $443,303 to $484,891, a 9.4% increase in just one year.
Federal interest rates have played a crucial role in shaping homeownership trends in Paoli. The period from 2013 to 2020 saw historically low interest rates, ranging from 0.09% to 0.38%. This low-interest environment likely contributed to the increase in homeownership, as it made mortgage financing more affordable for potential buyers. The sharp rise in homeownership from 77% in 2019 to 80% in 2020 coincides with interest rates dropping from 2.16% to 0.38%, further illustrating this relationship.
While homeownership rates increased, the percentage of renters in Paoli decreased from 26% in 2013 to 20% in 2022. Despite this decline in the renter population, average rent prices showed an overall upward trend. The average rent price rose from $1,498 in 2013 to $1,542 in 2022, peaking at $1,650 in 2017. The fluctuations in rent prices may be attributed to changes in the local housing market and the decreasing proportion of renters in the area.
In 2023 and 2024, Paoli continued to see growth in average home prices. The average home price reached $570,696 in 2023 and further increased to $594,464 in 2024, representing a 10.8% rise from 2022 to 2024. This upward trend occurred despite a significant increase in federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024. These higher interest rates could potentially impact future homeownership rates and price growth.
Looking ahead, predictive models suggest that average home prices in Paoli may continue to rise over the next five years, albeit at a potentially slower rate due to higher interest rates. Average rent prices are expected to remain relatively stable or show modest increases, reflecting the area's strong homeownership preference and limited rental market growth.
In summary, Paoli has experienced a significant shift towards homeownership, with a corresponding increase in average home prices. The interplay between federal interest rates, homeownership rates, and property values has been evident throughout the analyzed period. While the rental market has seen some fluctuations, it has remained a smaller segment of the housing landscape in this zip code. The recent surge in interest rates and continued home price appreciation will likely shape the future housing market dynamics in Paoli.
