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Rising Home Values and Ownership Dynamics in Zip Code 15007: A Decade of Growth in Bakerstown, 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 15007, located in Bakerstown, Pennsylvania, has experienced significant demographic and housing market changes over the past decade. This small community, covering just 0.23 square miles, has seen a notable increase in population and fluctuations in homeownership rates, average home prices, and average rent prices.
The homeownership rate in zip code 15007 has shown some variability over the years. In 2013, the area boasted a high 88% homeownership rate. However, this figure decreased to 77% by 2017 and remained relatively stable through 2022, ending at 80%. Concurrently, average home prices have shown a consistent upward trend. In 2013, the average home price was $150,074, which steadily increased to $241,962 by 2022, representing a substantial 61% growth over this period.
Federal interest rates have played a significant role in homeownership trends. From 2013 to 2016, when interest rates were exceptionally low (ranging from 0.11% to 0.40%), homeownership rates in the area declined from 88% to 77%. This counterintuitive trend might be attributed to other local economic factors overriding the typical relationship between low interest rates and increased homeownership. However, as interest rates began to rise more significantly from 2017 (1.00%) to 2022 (1.68%), homeownership rates stabilized and even slightly increased to 80%.
Renter percentages in zip code 15007 have fluctuated inversely to homeownership rates, rising from 11% in 2013 to a peak of 22% in 2020, before settling at 20% in 2022. Average rent prices have shown considerable volatility. In 2013, the average rent was $1,742, which decreased to $986 in 2014. The most dramatic changes occurred between 2016 and 2017, with average rent jumping from $346 to $2,556. By 2022, the average rent had settled at $1,726. This volatility in rent prices could be attributed to the small sample size in this zip code, where changes in a few rental properties can significantly impact the average.
Looking at the most recent data, the average home price in zip code 15007 continued its upward trajectory, reaching $251,028 in 2023 and further increasing to $259,621 in 2024. This represents a 7.3% increase from 2022 to 2024. Notably, federal interest rates have also risen significantly, reaching 5.02% in 2023 and 5.33% in 2024, which could potentially impact future homeownership rates and home prices in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 15007 will continue to rise, albeit at a potentially slower rate due to the higher interest rates. If the current trend persists, average home prices could reach approximately $300,000 by 2029. Average rent prices are more challenging to predict given their historical volatility, but assuming a stabilization of the market, they might settle in the $1,800 to $2,200 range over the next five years.
In summary, zip code 15007 has demonstrated a resilient housing market with steadily increasing average home prices despite fluctuations in homeownership rates. The area has maintained a high proportion of homeowners, even in the face of rising interest rates. The rental market has shown significant volatility, likely due to the small size of the community. As the population continues to grow in this zip code, it will be interesting to observe how these housing trends evolve in response to broader economic factors and local development.
