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Rising Home Values and Ownership in Zip Code 16117: Ellwood City's Resilient Housing Market
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 16117, located in Ellwood City, Pennsylvania, presents an intriguing case study of housing dynamics in a small-town setting. This area has experienced fluctuations in homeownership rates and housing prices over the past decade, reflecting broader economic trends and local market conditions.
The homeownership rate in zip code 16117 has shown a gradual increase over the years, rising from 75% in 2014 to 79% in 2022. This upward trend in homeownership coincides with a steady increase in average home prices. In 2014, the average home price was $93,162, which has grown significantly to $137,229 by 2022, representing a 47.3% increase over eight years. This correlation suggests that despite rising home values, more residents have been able to enter the housing market, possibly due to favorable economic conditions or local initiatives promoting homeownership.
Federal interest rates have played a significant role in shaping homeownership trends in zip code 16117. The period from 2014 to 2020 saw historically low interest rates, ranging from 0.09% to 0.38%. This low-interest environment likely contributed to the increase in homeownership, as it made mortgage financing more accessible and affordable for potential buyers. The slight dip in homeownership from 78% in 2021 to 77% in 2019 could be attributed to the gradual rise in interest rates during that period, which peaked at 2.16% in 2019 before dropping again.
Conversely, the renter population in zip code 16117 has seen a slight decline, from 25% in 2014 to 21% in 2022. This trend aligns with the increase in homeownership rates. Average rent prices have shown some volatility during this period. In 2014, the average rent was $690, which increased to $759 in 2016 before fluctuating and settling at $699 in 2022. The relatively stable rent prices, despite the decreasing percentage of renters, could indicate a balanced rental market or efforts to maintain affordability in the face of rising property values.
Looking at more recent data, the average home price in zip code 16117 continued to rise, reaching $140,048 in 2023 and further increasing to $148,235 in 2024. This represents a 5.8% year-over-year increase from 2023 to 2024. Interestingly, this price growth has occurred despite a significant increase in federal interest rates, which rose 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 16117 will continue to appreciate, albeit at a potentially slower rate due to higher interest rates. Projections suggest that by 2029, average home prices could reach approximately $175,000 to $185,000, assuming a moderate annual growth rate of 3-4%. Rent prices are expected to follow a similar upward trajectory, potentially reaching an average of $750 to $800 per month by 2029, reflecting both inflation and increased property values.
In summary, zip code 16117 has demonstrated a robust housing market characterized by increasing homeownership rates and steadily rising property values. The area has shown resilience to interest rate fluctuations, maintaining growth even in periods of higher rates. While the rental market has shrunk slightly, it remains a significant component of the local housing landscape. These trends suggest a positive outlook for the local real estate market, with continued growth expected in both home values and rental prices over the next five years.
