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Rising Home Values and Ownership in Zip Code 15628: Donegal's Decade of Change
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 15628, located in Donegal, Pennsylvania, has experienced significant shifts in homeownership rates and housing costs over the past decade. This small community has seen a general trend towards increased homeownership, with fluctuations in both average home prices and average rent prices.
The ownership percentage in zip code 15628 has shown a notable upward trend from 2013 to 2022. In 2013, the homeownership rate was 78%, which increased to 85% by 2022. This rise in homeownership coincided with varying patterns in average home prices, though specific figures for earlier years are not available. The trend suggests a growing preference for homeownership in this area, possibly due to factors such as community stability or favorable local economic conditions.
Federal interest rates have played a crucial role in shaping homeownership trends. From 2013 to 2016, interest rates remained relatively low, ranging from 0.11% to 0.40%, which likely contributed to the increase in homeownership from 78% to 83% during this period. As interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), the homeownership rate stabilized around 85%. The sharp drop in interest rates in 2020 (0.38%) and 2021 (0.08%) corresponded with a slight increase in homeownership to 87% in 2021, showcasing how lower rates can encourage home buying.
Renter percentages in zip code 15628 have generally decreased as homeownership increased. In 2013, the renter percentage was 22%, which dropped to 14% by 2022. Average rent prices, however, have shown considerable volatility. From 2013 to 2016, average rent increased moderately from $536 to $591. A significant jump occurred in 2017, with average rent more than doubling to $1,007, and further increasing to $1,034 by 2019. Interestingly, 2020 saw a sharp decline in average rent to $576, possibly influenced by the COVID-19 pandemic. By 2022, average rent had risen again to $772, indicating a recovery in the rental market.
In 2023 and 2024, average home prices in zip code 15628 showed a slight decrease. The average home price in 2023 was $175,393, dropping marginally to $174,630 in 2024. This slight decline occurred despite a significant increase in federal interest rates, which rose from 5.02% in 2023 to 5.33% in 2024. This stability in home prices, despite rising interest rates, suggests a robust local housing market.
Looking ahead, based on recent trends, we can project that average home prices in zip code 15628 may continue to remain relatively stable or experience modest growth over the next five years. The area's consistently high homeownership rate suggests a strong demand for housing, which could support price stability. Average rent prices, having shown volatility in recent years, may continue to fluctuate but are likely to trend upward, potentially reaching or surpassing the $800-$900 range within the next five years, assuming continued economic stability and population growth in the area.
In summary, zip code 15628 has demonstrated a clear trend towards increased homeownership, rising from 78% to 85% over the past decade. This trend has persisted despite fluctuations in average rent prices and changes in federal interest rates. The stability of average home prices in recent years, coupled with high homeownership rates, indicates a resilient local housing market. These factors suggest that Donegal may continue to be an attractive area for homeowners, with potential for steady growth in both the housing and rental markets in the coming years.
