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High Homeownership and Rising Home Values in Zip Code 16874: A Rural Pennsylvania Housing Market Analysis
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 16874, located in Clarence, Pennsylvania, presents an interesting case study in homeownership and housing market trends. This rural area, spanning 35.23 square miles, has experienced fluctuations in its population and housing dynamics over the past decade. The area has maintained a consistently high rate of homeownership, while average home prices and average rent have shown notable increases.
The homeownership rate in zip code 16874 has remained relatively stable, with a slight upward trend. In 2013, the homeownership rate was 84%, which increased to 87% by 2020 and settled at 85% in 2022. This high rate of homeownership coincides with a steady rise in average home prices. The average home price in 2013 was $121,368, which grew to $185,362 by 2022, representing a substantial 52.7% increase over nine years.
Federal interest rates have played a significant role in homeownership trends. From 2013 to 2016, when interest rates were historically low (0.11% to 0.40%), the homeownership rate in the area increased from 84% to 86%. This aligns with the general trend of lower interest rates encouraging homeownership due to more affordable financing options. However, even as interest rates began to rise more sharply from 2017 onwards, the homeownership rate in this zip code remained high, suggesting other factors such as local economic conditions or housing preferences may have a strong influence in this area.
The renter population in zip code 16874, while smaller, has also seen changes. The percentage of renters decreased from 17% in 2014 to 14% in 2022. Despite this decline, average rent prices have increased significantly. In 2013, the average rent was $562, which rose to $867 by 2022, marking a 54.3% increase. This substantial rise in rent prices, coupled with a decreasing renter population, could indicate a shift towards higher-quality rental properties or increased demand for the limited rental stock available.
Looking at the most recent data, the average home price in zip code 16874 reached $191,681 in 2023 and further increased to $193,606 in 2024. This continued upward trend occurs despite the sharp rise in federal interest rates, which stood at 5.02% in 2023 and 5.33% in 2024. These figures suggest a robust local housing market that has maintained growth even in the face of higher borrowing costs.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 16874 will continue to rise, potentially reaching around $225,000 by 2029. This projection is based on the historical growth rate and assumes continued economic stability in the area. Average rent prices are also expected to increase, potentially surpassing $1,000 per month within the next five years if current trends persist.
In summary, zip code 16874 demonstrates a strong preference for homeownership, with consistently high rates above 80%. The area has experienced significant growth in both average home prices and average rent, outpacing many national averages. Despite rising interest rates, the housing market in this zip code has shown resilience, with continued price appreciation. The combination of high homeownership rates and increasing property values suggests a stable and potentially desirable real estate market in this Pennsylvania community.
