Loading Content...
Average Home Values and Ownership Trends in Zip Code 17961: Orwigsburg's Dynamic Real Estate Market
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Zip code 17961, located in Orwigsburg, Pennsylvania, has experienced notable fluctuations in homeownership rates and housing prices over the past decade. This area, known for its small-town charm and historical significance, has seen a general trend of decreasing homeownership, while average home prices and average rent have shown overall increases, albeit with some variability.
Homeownership rates in zip code 17961 have shown a gradual decline from 2013 to 2022. In 2013, the homeownership rate was 80%, which decreased to 75% by 2022. This 5% drop coincided with a significant increase in average home prices. In 2013, the average home price was $145,489, which rose to $234,880 by 2022, representing a substantial 61.4% increase over nine years. This inverse relationship suggests that rising home prices may have made homeownership less accessible for some residents.
Federal interest rates have played a crucial role in shaping homeownership trends. From 2013 to 2016, interest rates remained extremely low, ranging from 0.11% to 0.4%. During this period, homeownership rates in the zip code remained relatively stable, hovering around 76%. However, as interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), we observed a slight increase in homeownership to 78% by 2019. This counterintuitive trend might be attributed to residents rushing to purchase homes before rates climbed further.
Renter percentages in zip code 17961 have shown an overall increase, mirroring the decline in homeownership. The renter population grew from 20% in 2013 to 24% in 2022. Interestingly, average rent prices have not shown a consistent upward trend during this period. In 2013, the average rent was $820, which peaked at $886 in 2015 before declining to $728 in 2016. By 2022, the average rent had increased to $926, representing a 12.9% increase from 2013, but with significant fluctuations in between. These variations in rent prices, coupled with the increasing renter population, suggest a complex rental market influenced by factors beyond simple supply and demand.
Looking at the most recent data, the average home price in zip code 17961 rose to $241,062 in 2023 and further increased to $252,425 in 2024. This represents a 7.5% increase from 2022 to 2024. Concurrently, federal interest rates have risen dramatically, reaching 5.02% in 2023 and 5.33% in 2024. These high interest rates, not seen since before 2008, are likely to impact homebuying decisions and could potentially slow down the rapid home price appreciation observed in recent years.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 17961 will continue to rise, but at a more moderate pace due to the high interest rate environment. We project average home prices could reach approximately $280,000 to $300,000 by 2029. Average rent prices are expected to increase as well, potentially reaching $1,000 to $1,100 per month by 2029, driven by ongoing demand for rental properties.
In summary, zip code 17961 has experienced a gradual shift towards a higher percentage of renters, coupled with substantial increases in average home prices. The interplay between federal interest rates, homeownership rates, and housing prices highlights the complex dynamics of the local real estate market. Moving forward, we expect continued growth in both home prices and rents, albeit at a more tempered rate, reflecting the broader economic conditions and the area's evolving demographic makeup.
