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Average Home Values and Ownership Trends in Zip Code 18070: A Decade of Rural Housing Market Shifts
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 18070, located in Hereford, Pennsylvania, has experienced notable shifts in its housing landscape over the past decade. This area has seen fluctuations in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market dynamics.
The homeownership rate in zip code 18070 has shown some variability but has generally remained high. In 2013, the area boasted a 92% homeownership rate, which slightly decreased to 83% by 2022. This slight decline in homeownership coincided with a significant increase in average home prices. In 2013, the average home price was $199,625, which steadily rose to $318,741 by 2022, representing a substantial 59.7% increase over nine years. This trend suggests that while homeownership remains strong in the area, rising home prices may have made it more challenging for some residents to enter the housing market.
The relationship between federal interest rates and homeownership rates in this zip code is noteworthy. From 2013 to 2016, when interest rates were historically low (ranging from 0.11% to 0.40%), homeownership rates remained above 88%. However, as interest rates began to rise more significantly from 2017 onwards, reaching 1.68% in 2022, we observed a gradual decline in homeownership rates to 83%. This trend aligns with the general principle that lower interest rates tend to encourage homeownership due to more affordable financing options.
Renter percentages and average rent prices in zip code 18070 have shown an interesting correlation. In 2013, only 8% of residents were renters, with an average rent of $957. By 2022, the renter percentage had increased to 17%, while the average rent rose to $1,231, a 28.6% increase. This trend suggests that as homeownership became less accessible due to rising home prices, more residents turned to renting, driving up demand and subsequently, rental prices. The population growth from 898 in 2013 to 1,106 in 2022 may have also contributed to increased rental demand and prices.
Looking at the most recent data, average home prices in zip code 18070 continued to rise, reaching $336,503 in 2023 and $350,777 in 2024. This represents a 10% increase from 2022 to 2024. Concurrently, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024. These high interest rates, combined with rising home prices, may further impact homeownership trends in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 18070 will continue to rise, albeit at a potentially slower rate due to the current high interest rate environment. We project average home prices could reach approximately $400,000 by 2029. Average rent prices are also expected to increase, potentially reaching around $1,400 per month in the same timeframe, driven by continued demand for rental properties as homeownership becomes more challenging for some residents.
In summary, zip code 18070 has experienced a gradual shift from an overwhelmingly owner-occupied area to one with a growing renter population. This change has been accompanied by significant increases in both average home prices and average rent prices. The interplay between rising property values, increasing interest rates, and population growth has reshaped the housing landscape of this Pennsylvania community, creating both opportunities and challenges for residents and potential homebuyers alike.
