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Home Values and Ownership in Zip Code 17536: Kirkwood'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
Kirkwood, Pennsylvania, zip code 17536, is a residential area that has experienced notable shifts in homeownership, housing prices, and rental markets over the past decade. This analysis will explore the intricate relationship between these factors and their implications for the local real estate landscape.
The homeownership rate in Kirkwood has remained relatively stable, fluctuating between 79% and 84% from 2013 to 2022. Meanwhile, average home prices have shown a consistent upward trend. In 2013, the average home price was $253,556, which steadily increased to $426,122 by 2022, representing a substantial 68% growth over this period. This trend suggests a robust housing market with growing property values, despite minor fluctuations in homeownership rates.
Federal interest rates have played a significant role in shaping homeownership patterns. The period from 2013 to 2016 saw historically low interest rates, hovering around 0.1% to 0.4%. During this time, homeownership in Kirkwood reached its peak at 84% in 2016, coinciding with an average home price of $279,059. As interest rates began to rise more significantly from 2017 onwards, there was a slight dip in homeownership, settling at 82% by 2022. This trend aligns with the general principle that lower interest rates tend to encourage homeownership due to more affordable financing options.
Rental trends in Kirkwood present an interesting counterpoint to homeownership patterns. The percentage of renters has fluctuated between 16% and 20% from 2013 to 2022. Notably, average rent prices have shown a downward trend despite the increasing home values. In 2013, the average rent was $993, which decreased to $651 by 2022, a 34% reduction. This decline in rent prices, coupled with the slight increase in the renter population (from 18% in 2013 to 18% in 2022), suggests a potential oversupply of rental properties or changing local economic conditions affecting rental demand.
The years 2023 and 2024 have seen continued growth in average home prices in Kirkwood. In 2023, the average home price reached $444,935, a 4.4% increase from 2022. By 2024, it further rose to $459,379, marking a 3.2% year-over-year increase. Interestingly, this growth has occurred despite a significant rise in federal interest rates, which stood at 5.02% in 2023 and 5.33% in 2024. This suggests a strong local housing market that has remained resilient in the face of higher borrowing costs.
Looking ahead, predictive models forecast continued growth in average home prices for Kirkwood over the next five years, albeit at a potentially slower rate due to the higher interest rate environment. Average home prices are projected to reach approximately $500,000 by 2029. In contrast, rent prices are expected to stabilize and potentially see modest increases, reversing the previous downward trend, as the rental market adjusts to changing economic conditions and housing demand.
In summary, Kirkwood has demonstrated a robust and growing housing market with steadily increasing average home prices, despite fluctuations in homeownership rates and federal interest rates. The rental market has shown an interesting divergence, with decreasing average rents despite stable renter populations. As we move forward, the area is poised for continued growth in property values, with potential stabilization in the rental market, reflecting the dynamic nature of this Pennsylvania community's real estate landscape.
