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Rising Home Values and Ownership Trends in Zip Code 17068: Bloomfield'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 17068, located in Bloomfield, Pennsylvania, has experienced significant changes in homeownership rates and housing prices over the past decade. This area has maintained a high rate of owner-occupied housing, with a notable increase in recent years. The trends in average home prices and average rent have shown interesting patterns, reflecting the dynamic real estate market in this region.
The ownership percentage in zip code 17068 has shown a general upward trend, particularly in recent years. In 2013, the homeownership rate was 81%, which remained relatively stable until 2019. However, there was a significant jump from 79% in 2019 to 84% in 2020, and it continued to rise, reaching 88% in 2022. This increase in homeownership coincided with a substantial rise in average home prices. The average home price in 2013 was $191,311, and it steadily increased to $270,225 by 2022, representing a 41.2% increase over this period.
Federal interest rates have played a crucial role in homeownership trends. The period from 2013 to 2022 saw historically low interest rates, ranging from 0.08% to 1.68%. These low rates likely contributed to the increasing homeownership rates in zip code 17068, as they made mortgages more affordable for potential buyers. The sharp rise in homeownership from 2019 to 2022 coincided with interest rates dropping from 2.16% in 2019 to 0.08% in 2021, before rising to 1.68% in 2022.
Conversely, the percentage of renters in zip code 17068 has decreased over time, from 21% in 2019 to 12% in 2022. Despite this decrease in the renter population, average rent prices have shown some fluctuation. The average rent increased from $737 in 2013 to a peak of $882 in 2017, before declining to $786 in 2022. This trend suggests that despite fewer renters, there has been sustained demand for rental properties, possibly due to the overall population growth in the area from 4,472 in 2013 to 4,173 in 2022.
In 2023 and 2024, the real estate market in zip code 17068 continued to evolve. The average home price rose to $281,201 in 2023 and further increased to $289,346 in 2024, representing a 7.1% increase over two years. This growth occurred despite a significant rise in federal interest rates, which reached 5.02% in 2023 and 5.33% in 2024. These higher interest rates typically make borrowing more expensive, yet the housing market in this area has shown resilience with continued price appreciation.
Looking ahead, predictive models suggest that the average home prices in zip code 17068 may continue to rise over the next five years, albeit at a potentially slower rate due to the higher interest rate environment. Average rent prices are also expected to increase moderately, reflecting the ongoing demand for housing in the area. However, the rate of increase for both home prices and rents may be tempered by broader economic factors and local market conditions.
In summary, zip code 17068 has demonstrated a strong trend towards homeownership, with significant increases in both the percentage of owner-occupied homes and average home prices. The area has shown resilience in its housing market, with continued price appreciation even in the face of rising interest rates. The rental market, while smaller, has maintained relatively stable prices despite fluctuations in the renter population. These trends suggest a robust and dynamic real estate market in this Pennsylvania borough.
