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Home Values and Ownership Trends in Zip Code 17201: Chambersburg's Shifting Real Estate Landscape
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 17201, located in Chambersburg, Pennsylvania, has experienced significant shifts in its housing market over the past decade. This area has seen a gradual increase in average home prices and average rent, coupled with a slight trend towards renting over homeownership.
The ownership percentage in zip code 17201 has shown a gradual decline from 54% in 2013 to 48% in 2022, while average home prices have steadily increased. In 2013, the average home price was $134,220, which rose to $215,191 by 2022, representing a 60.3% increase over this period. This inverse relationship suggests that as home prices climbed, fewer residents were able to afford homeownership. The most substantial year-over-year increase in average home prices occurred between 2020 and 2021, jumping from $176,525 to $195,273, a 10.6% rise.
Federal interest rates have played a role in homeownership trends. From 2013 to 2016, when interest rates were extremely low (0.11% to 0.40%), homeownership rates remained relatively stable at around 54-55%. However, as interest rates began to rise more significantly from 2017 (1.00%) to 2019 (2.16%), homeownership rates started to decline, dropping to 51% by 2019. This trend suggests that higher interest rates may have made mortgages less affordable for potential buyers in the area.
Conversely, the percentage of renters in zip code 17201 has increased from 46% in 2013 to 52% in 2022. This shift towards renting coincides with a rise in average rent prices. In 2013, the average rent was $862, which increased to $913 by 2022, a 5.9% increase. The population growth from 24,645 in 2013 to 26,251 in 2022 may have contributed to the increased demand for rental properties, potentially driving up rent prices. Notably, there was a significant spike in average rent in 2021 to $982, before dropping back to $913 in 2022.
Looking at more recent data, the average home price in zip code 17201 continued to rise, reaching $228,574 in 2023 and $236,324 in 2024. This represents a 6.2% increase from 2022 to 2023, and a further 3.4% increase from 2023 to 2024. Interestingly, these price increases occurred despite a sharp rise in federal interest rates, which jumped to 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.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 17201 will continue to rise, potentially reaching around $275,000 by 2029. This projection is based on the consistent upward trend observed over the past decade. For average rent prices, we expect a more moderate increase, potentially reaching approximately $1,000 by 2029, assuming the population continues to grow and the trend towards renting persists.
In summary, zip code 17201 has experienced a shift towards renting, with homeownership rates declining as average home prices have substantially increased. The area has shown resilience in its housing market, with home prices continuing to rise even in the face of higher interest rates. The rental market has also seen growth, both in the percentage of renters and average rent prices. These trends suggest a dynamic housing market in Chambersburg, with continued growth expected in both home values and rental prices over the next five years.
