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Rising Home Values and Ownership in Zip Code 16827: Boalsburg'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 16827, located in Boalsburg, Pennsylvania, has experienced significant changes in homeownership rates, average home prices, and average rent prices over the past decade. This area has shown a general trend towards increased homeownership and rising property values, with some fluctuations in the rental market.
The ownership percentage in zip code 16827 has shown a notable increase from 74% in 2013 to 81% in 2022. This upward trend in homeownership coincides with a steady rise in average home prices. In 2013, the average home price was $245,714, which increased to $372,866 by 2022, representing a substantial 51.7% increase over nine years. This correlation suggests that despite rising home prices, more residents in the area have been able to transition into homeownership.
Federal interest rates have played a significant role in shaping homeownership trends in zip code 16827. The period from 2013 to 2016 saw historically low interest rates, ranging from 0.11% to 0.40%, which likely contributed to the increase in homeownership from 74% to 81% during this time. As interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), homeownership rates remained relatively stable, suggesting that other local factors may have helped maintain high levels of homeownership despite increasing borrowing costs.
The rental market in zip code 16827 has shown interesting trends in relation to the homeownership rates. As the percentage of renters decreased from 26% in 2013 to 19% in 2022, average rent prices experienced significant fluctuations. In 2013, the average rent was $985, which increased to $1,514 by 2021, representing a 53.7% increase. However, in 2022, there was a notable decrease to $1,345. This drop in average rent could be attributed to various factors, including changes in housing supply or local economic conditions.
Looking at the most recent data for 2023 and 2024, we see that average home prices in zip code 16827 have continued to rise. In 2023, the average home price reached $392,783, and by 2024, it further increased to $400,777. This represents a 2% year-over-year increase. Notably, federal interest rates have also seen a significant increase, rising from 5.02% in 2023 to 5.33% in 2024. These higher interest rates may impact future homeownership trends and affordability in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 16827 will continue to rise, albeit at a potentially slower rate due to higher interest rates. Based on the historical data and current market conditions, we project that average home prices could reach approximately $450,000 to $475,000 by 2029. For average rent prices, we expect a more moderate increase, potentially reaching around $1,600 to $1,700 per month by 2029, assuming stable economic conditions and housing supply.
In summary, zip code 16827 has demonstrated a strong trend towards increased homeownership and rising property values over the past decade. The area has shown resilience in maintaining high homeownership rates despite fluctuations in interest rates and increasing home prices. The rental market has experienced more volatility, with recent decreases in both the percentage of renters and average rent prices. Moving forward, the interplay between rising interest rates, continued home price appreciation, and local economic factors will likely shape the housing market dynamics in this zip code.
