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Average Home Values and Ownership Rise in Zip Code 16401: Albion's Small-Town Real Estate Boom
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 16401, located in Albion, Pennsylvania, has experienced notable shifts in homeownership rates and housing prices over the past decade. This area, known for its small-town charm, has seen a general trend towards increased homeownership and fluctuating housing prices.
The ownership percentage in zip code 16401 has shown a significant upward trend, particularly in recent years. In 2013, the homeownership rate was 77%, which gradually decreased to 74% by 2018. However, from 2020 onwards, there was a sharp increase in homeownership, reaching 83% in 2022. This rise in homeownership coincided with substantial growth in average home prices. The average home price in 2013 was $110,811, which steadily increased to $161,522 by 2022, representing a 45.8% increase over this period.
Federal interest rates have played a crucial role in shaping homeownership trends in this area. The period from 2013 to 2016 saw historically low interest rates, hovering around 0.1% to 0.4%. This likely contributed to the relatively stable homeownership rates during this time. As interest rates began to rise from 2017 (1%) to 2019 (2.16%), we observed a slight dip in homeownership. Interestingly, the dramatic drop in interest rates in 2020 (0.38%) and 2021 (0.08%) coincided with a significant surge in homeownership, jumping from 75% in 2019 to 83% in 2022.
Renter percentages in zip code 16401 have generally decreased as homeownership increased. In 2013, 23% of residents were renters, which peaked at 26% from 2016 to 2018. However, by 2022, the renter percentage had dropped to 17%. Average rent prices have shown volatility over this period. In 2013, the average rent was $699, which dropped to $581 in 2017, then rose to $762 in 2021, before decreasing again to $596 in 2022. These fluctuations in rent prices don't seem to directly correlate with the decreasing renter percentages, suggesting other factors, such as local economic conditions or housing availability, may be influencing renting trends.
As of 2024, the average home price in zip code 16401 has reached $172,592, showing a continued upward trend from previous years. This represents a 7.3% increase from the 2022 average of $161,522. The current federal interest rate stands at 5.33%, significantly higher than the rates seen in the early 2020s. This increase in interest rates could potentially impact future homeownership trends and housing affordability in the area.
Looking ahead, based on the historical data and current trends, we can project that average home prices in zip code 16401 may continue to rise over the next five years, potentially reaching around $200,000 by 2029. However, this growth rate might slow down due to the higher interest rates. For rent prices, given their historical volatility, it's challenging to predict a clear trend. We might see average rents fluctuate between $600 and $800, depending on local economic factors and housing supply.
In summary, zip code 16401 has experienced a significant increase in homeownership rates, rising from 74% in 2018 to 83% in 2022, coupled with a steady growth in average home prices. The area has also seen fluctuating rent prices and a decreasing percentage of renters. The interplay between federal interest rates, homeownership, and housing prices highlights the complex dynamics of the local real estate market. As we move forward, the continued rise in home prices and higher interest rates may present both opportunities and challenges for residents and potential homebuyers in this Pennsylvania borough.
