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Average Home Values and Ownership in Zip Code 19520: Rural Elverson's Robust Housing Market
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 19520, located in Elverson, Pennsylvania, has experienced notable shifts in homeownership rates and housing prices over the past decade. This area, known for its rural charm and proximity to urban centers, has maintained a consistently high rate of homeownership while navigating fluctuating real estate market conditions.
The ownership percentage in zip code 19520 has shown remarkable stability, with a slight increase from 83% in 2013 to 85% in 2022. This trend coincides with a significant rise in average home prices, which grew from $247,372 in 2013 to $398,185 in 2022, representing a 61% increase over nine years. The consistent high rate of homeownership, despite rising prices, suggests a strong local economy and desirable living conditions in the area.
Federal interest rates have played a crucial role in shaping homeownership trends. The period from 2013 to 2016 saw historically low interest rates, ranging from 0.11% to 0.40%, which likely contributed to the maintenance of high homeownership rates in the zip code. As interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), the homeownership rate in the area actually increased slightly from 84% to 85%, demonstrating the area's resilience to moderate interest rate changes.
Renter percentages in zip code 19520 have remained relatively low, decreasing slightly from 17% in 2014 to 15% in 2022. Interestingly, average rent prices have shown some volatility during this period. The average rent peaked at $1,091 in 2015 before experiencing a general downward trend, reaching $1,016 in 2022. This decrease in average rent, coupled with a slight reduction in the percentage of renters, could indicate a shift towards homeownership or suggest that the rental market has adjusted to maintain affordability in the face of rising home prices.
Looking at the most recent data, average home prices in zip code 19520 continued to rise, reaching $416,895 in 2023 and $435,060 in 2024. This represents a 9.3% increase from 2022 to 2024. Concurrently, federal interest rates have climbed significantly, standing at 5.02% in 2023 and 5.33% in 2024. Despite these higher interest rates, which typically discourage home buying, the area has maintained its high homeownership rate, reflecting its strong appeal to residents.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 19520 will continue to rise, albeit at a potentially slower pace due to higher interest rates. By 2029, average home prices could reach approximately $525,000 to $550,000, assuming a moderate annual growth rate of 4-5%. Average rent prices are expected to stabilize and potentially increase slightly, potentially reaching $1,100 to $1,150 per month by 2029, reflecting a modest 1-2% annual growth.
In summary, zip code 19520 has demonstrated a robust and stable housing market characterized by high homeownership rates and steadily increasing property values. The area has shown resilience to interest rate fluctuations and maintains its attractiveness to homeowners. While rent prices have experienced some volatility, they appear to be stabilizing. The continued rise in home prices, even in the face of higher interest rates, suggests strong demand for housing in this zip code, likely driven by its desirable location and community attributes.
