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Home Values and Ownership in Zip Code 15935: Jerome's Resilient Housing Market
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 15935, located in Jerome, Pennsylvania, has experienced notable shifts in its housing market 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 15935 has shown a general upward trend, increasing from 85% in 2018 to 93% in 2022. This rise in homeownership coincides with a significant increase in average home prices. In 2018, the average home price was $99,653, which steadily rose to $139,539 by 2022, representing a 40% increase over four years. This trend suggests that despite rising prices, more residents were able to enter the housing market, possibly due to favorable economic conditions or local factors encouraging homeownership.
Federal interest rates have played a crucial role in shaping homeownership trends. The period from 2018 to 2021 saw historically low interest rates, dropping from 1.83% in 2018 to just 0.08% in 2021. This low-interest environment likely contributed to the increase in homeownership, as it made mortgages more affordable. The sharp rise in homeownership from 88% in 2020 to 93% in 2022 correlates with these low interest rates, despite the simultaneous increase in home prices.
Conversely, the percentage of renters in zip code 15935 has decreased from 15% in 2018 to 7% in 2022. Interestingly, this decline in the renter population has been accompanied by a general increase in average rent prices. The average rent rose from $769 in 2018 to $930 in 2021, before dropping slightly to $772 in 2022. This trend suggests that while fewer people are renting, those who do are facing higher costs. The population decline from 3,985 in 2018 to 3,562 in 2022 may have contributed to the reduced rental demand, but it hasn't prevented rent prices from rising overall.
In 2023 and 2024, the housing market in zip code 15935 continued to evolve. The average home price reached $139,962 in 2023 and further increased to $142,329 in 2024, showing a steady upward trajectory. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, marking a substantial increase from the low rates of previous years. These higher interest rates may impact future homeownership trends and housing affordability in the area.
Looking ahead, predictive models suggest that average home prices in zip code 15935 are likely to continue their upward trend over the next five years, albeit at a potentially slower rate due to higher interest rates. Average rent prices may stabilize or see moderate increases, influenced by the area's decreasing population and the high rate of homeownership. However, economic factors and local market conditions will play crucial roles in shaping these trends.
In summary, zip code 15935 has experienced a significant increase in homeownership rates and average home prices over the past decade, particularly from 2018 to 2022. This trend occurred despite rising home prices, likely facilitated by low interest rates during that period. The rental market has seen a decrease in the percentage of renters but an overall increase in average rent prices. The recent rise in interest rates and continued increase in home prices suggest a potential shift in market dynamics, which may affect future homeownership rates and housing affordability in the area.
