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Rising Home Values and Declining Ownership: The Shifting Real Estate Landscape of Zip Code 17847 in Milton, Pennsylvania
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 17847, located in Milton, Pennsylvania, has experienced notable shifts in its housing market over the past decade. This area, covering 47.21 square miles, 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 17847 has shown a gradual decline from 2013 to 2022. In 2013, 68% of housing units were owner-occupied, while by 2022, this figure had decreased to 62%. Conversely, the average home prices in the area have demonstrated a steady upward trend. In 2013, the average home price was $121,614, and by 2022, it had risen to $191,341, representing a substantial increase of 57.3% over this period. This inverse relationship between homeownership rates and average home prices suggests that rising property values may have made homeownership less accessible for some residents.
Federal interest rates have played a significant role in shaping homeownership trends in zip code 17847. From 2013 to 2016, interest rates remained relatively low, hovering around 0.1% to 0.4%. During this period, homeownership rates remained relatively stable, ranging from 67% to 70%. However, as interest rates began to rise more significantly from 2017 onwards, reaching 1.68% by 2022, homeownership rates showed a consistent decline, dropping from 70% in 2017 to 62% in 2022. This trend aligns with the general principle that higher interest rates can make mortgages less affordable, potentially discouraging homeownership.
Renter percentages in zip code 17847 have increased from 32% in 2013 to 38% in 2022, mirroring the decline in homeownership. Average rent prices have fluctuated during this period, with some notable changes. In 2013, the average rent was $774, which increased to $793 by 2017. However, there was a dip to $732 in 2018, followed by a recovery to $784 by 2022. The overall trend shows a modest increase in average rent prices, albeit with some volatility. The growing renter population, coupled with the area's slight population decline from 12,741 in 2013 to 12,137 in 2022, suggests a shift in housing preferences or affordability constraints in the local market.
Moving to more recent data, the average home price in zip code 17847 continued its upward trajectory, reaching $200,444 in 2023 and $201,392 in 2024. This represents a 4.7% increase from 2022 to 2023 and a slight 0.5% increase from 2023 to 2024. Concurrently, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homeownership trends and housing affordability in the area.
Looking ahead, based on historical trends and current market conditions, we can project potential scenarios for the next five years. Average home prices in zip code 17847 are likely to continue their upward trend, albeit at a potentially slower pace due to higher interest rates. We might expect average home prices to reach around $220,000 to $230,000 by 2029. Average rent prices, which have shown more volatility, may continue to increase moderately, potentially reaching $850 to $900 by 2029, assuming continued demand for rental properties.
In summary, zip code 17847 has experienced a gradual shift from homeownership to renting, with rising average home prices potentially contributing to this trend. The inverse relationship between homeownership rates and both average home prices and interest rates highlights the complex interplay of factors affecting the local housing market. As the area moves forward, balancing housing affordability with market growth will likely be a key consideration for local policymakers and residents alike.
