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Average Home Values and Ownership Soar in Zip Code 17508: Brownstown's Housing Transformation
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 17508, located in Brownstown, Pennsylvania, has experienced significant shifts in homeownership rates and housing prices over the past decade. This small community has seen a remarkable increase in owner-occupied housing, coupled with fluctuating average home and rent prices.
The ownership percentage in zip code 17508 has shown a strong upward trend, increasing from 80% in 2013 to an impressive 96% in 2022. This substantial rise in homeownership coincides with a steady increase in average home prices. In 2013, the average home price was $193,064, which grew to $321,576 by 2022, representing a 66.6% increase over nine years. This trend suggests a growing preference for homeownership in the area, possibly driven by the perceived value and investment potential of local real estate.
Federal interest rates have played a significant role in shaping homeownership trends in zip code 17508. The period from 2013 to 2020 saw historically low interest rates, ranging from 0.09% to 0.38%, which likely contributed to the surge in homeownership. As interest rates remained low, more residents were able to afford mortgages, driving up both demand and prices for homes. The sharp increase in homeownership from 90% in 2019 to 96% in 2022 occurred despite a slight rise in interest rates to 1.68% in 2022, indicating strong local demand for homeownership.
Conversely, the renter percentage in zip code 17508 has decreased dramatically, falling from 19% in 2013 to just 4% in 2022. This decline in renters has been accompanied by fluctuations in average rent prices. In 2013, the average rent was $1,350, which decreased to $829 in 2018 before rising sharply to $1,638 in 2021 and then settling at $1,406 in 2022. The volatility in rent prices, coupled with the declining renter population, suggests a shifting dynamic in the local housing market, with a clear preference for homeownership emerging.
In 2023 and 2024, the housing market in zip code 17508 continued to evolve. The average home price reached $339,375 in 2023 and further increased to $356,177 in 2024, representing a 10.7% growth over two years. This price appreciation occurred despite a significant rise in federal interest rates, which reached 5.02% in 2023 and 5.33% in 2024. These higher interest rates have not yet appeared to dampen the local housing market's growth, indicating strong underlying demand for homes in the area.
Looking ahead, predictive models suggest that the upward trend in average home prices is likely to continue over the next five years, albeit potentially at a more moderate pace due to the higher interest rate environment. Average rent prices may stabilize or see modest increases as the rental market becomes increasingly niche in this predominantly owner-occupied area. However, the exact trajectory will depend on various factors, including local economic conditions and broader housing market trends.
In summary, zip code 17508 has transformed into a predominantly homeowner community over the past decade, with ownership rates reaching 96% by 2022. This shift has been accompanied by significant appreciation in average home values, which have continued to rise even in the face of increasing interest rates. The rental market has become a small fraction of the housing landscape, with volatile rent prices reflecting the changing dynamics. As the community moves forward, it appears poised for continued growth in home values, with the potential for further solidification of its status as a homeowner-centric area.
