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Home Values and Ownership Trends in Mexico, Zip Code 17059: Interest Rates Impact 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
Mexico, located in zip code 17059 in Pennsylvania, has experienced significant changes in homeownership rates and housing prices over the past decade. This analysis explores the trends in ownership percentages, average home prices, and average rent prices, providing insights into the local real estate market dynamics.
The homeownership rate in Mexico has gradually declined from 74% in 2013 to 66% in 2022. Conversely, the percentage of renters increased from 26% to 34% during the same period. This shift coincides with a significant increase in average home prices, which rose from $136,528 in 2013 to $211,320 in 2022, representing a 54.8% increase over nine years.
The relationship between federal interest rates and homeownership rates in Mexico appears to follow general economic trends. From 2013 to 2016, when interest rates were historically low (ranging from 0.11% to 0.40%), homeownership rates remained relatively stable at around 72-74%. However, as interest rates began to rise more significantly from 2017 onwards, reaching 1.68% by 2022, homeownership rates declined to 66%. This suggests that higher interest rates may have contributed to making homeownership less affordable for some residents.
Average rent prices in Mexico have shown fluctuations over the years, but with an overall upward trend. In 2013, the average rent was $686, which increased to $769 by 2021, representing a 12.1% increase. However, there was a slight decrease to $707 in 2022. The renter percentage has steadily increased from 26% in 2013 to 34% in 2022, indicating a growing preference or necessity for rental housing in the area. This trend might be attributed to the rising home prices and potentially changing demographics or economic conditions in the community.
In 2023 and 2024, Mexico experienced further changes in its housing market. The average home price reached $218,780 in 2023, marking the highest point in the data set. However, there was a slight decrease to $214,607 in 2024, representing a 1.9% decline. Concurrently, federal interest rates rose significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may contribute to cooling the housing market and potentially making homeownership more challenging for some residents.
Looking ahead, predictive models suggest that average home prices in Mexico may continue to experience moderate growth over the next five years, albeit at a slower pace than observed in recent years. The average home price could potentially reach around $230,000 to $240,000 by 2029. Average rent prices are also expected to continue their upward trajectory, potentially reaching $800 to $850 per month in the same timeframe.
In summary, Mexico has witnessed a shift towards a higher percentage of renters, coinciding 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. As the community moves forward, it will be crucial to monitor these trends and their impact on housing affordability and accessibility for residents of zip code 17059.
