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Home Values and Ownership Trends in Zip Code 18076: Red Hill's Real Estate Resilience
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 18076, located in Red Hill, Pennsylvania, has experienced significant changes in its housing market over the past decade. This area has shown a general trend of increasing homeownership rates, rising average home prices, and fluctuating average rent prices. The community has maintained a relatively stable population with a noticeable increase in recent years.
The homeownership rate in zip code 18076 has shown an overall upward trend from 2013 to 2022. In 2013, the homeownership rate was 73%, which increased to 75% by 2022. This increase coincided with a substantial rise in average home prices. In 2013, the average home price was $174,708, which steadily increased to $288,334 by 2022, representing a 65% increase over this period. This trend suggests that despite rising home prices, more residents were able to transition into homeownership.
Federal interest rates have played a significant role in homeownership trends. From 2013 to 2016, interest rates remained below 0.5%, coinciding with a slight dip in homeownership from 73% to 71%. As interest rates began to rise from 2017 to 2019, reaching 2.16% in 2019, homeownership rates remained stable at 71%. Interestingly, when interest rates dropped dramatically to 0.38% in 2020, homeownership increased to 72%, further rising to 75% by 2022 despite interest rates climbing to 1.68%. This suggests that while lower interest rates generally encourage homeownership, other factors such as local economic conditions and housing supply also play crucial roles.
Renter percentages in zip code 18076 have fluctuated inversely to homeownership rates, decreasing from 27% in 2013 to 25% in 2022. Average rent prices, however, have shown an overall upward trend. In 2013, the average rent was $1,216, which increased to $1,341 by 2022, representing a 10.3% increase. It's worth noting that rent prices peaked at $1,465 in 2021 before decreasing slightly in 2022. The population growth from 2,411 in 2013 to 2,738 in 2022 may have contributed to the overall increase in rent prices due to higher demand for rental properties.
In 2023 and 2024, the housing market in zip code 18076 continued to evolve. The average home price reached $310,445 in 2023 and further increased to $327,151 in 2024, representing a 13.5% increase over two years. This substantial rise occurred despite federal interest rates climbing to 5.02% in 2023 and 5.33% in 2024, which are significantly higher than previous years. These figures indicate a robust local housing market that has continued to appreciate despite higher borrowing costs.
Looking ahead, predictive models suggest that average home prices in zip code 18076 may continue to rise over the next five years, albeit at a potentially slower rate due to higher interest rates. Average rent prices are also expected to increase, driven by population growth and the overall appreciation of the local real estate market. However, the rate of increase may moderate as the market adjusts to economic conditions and housing supply changes.
In conclusion, zip code 18076 has demonstrated a resilient and growing housing market characterized by increasing homeownership rates, rising average home prices, and generally increasing average rent prices. The area has shown the ability to sustain price growth even in the face of rising interest rates, suggesting strong local demand for housing. As the community continues to grow, it will be crucial to monitor how these trends evolve, particularly in relation to affordability and the balance between owning and renting in this Pennsylvania borough.
