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Rising Home Values and Ownership Trends in Zip Code 17087: Richland's Resilient Real Estate 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 17087, located in Richland, Pennsylvania, has experienced notable shifts in homeownership rates and housing prices over the past decade. This area, with a population of 3,433 in 2022, has seen interesting dynamics in its real estate market, reflecting broader economic trends and local factors.
The ownership percentage in this zip code has shown a general upward trend from 2013 to 2022, while average home prices have consistently increased. In 2013, the homeownership rate was 77%, and the average home price was $166,312. By 2018, homeownership had risen to 84%, coinciding with an average home price of $183,241. However, there was a slight decrease in homeownership to 78% by 2022, even as the average home price continued to climb, reaching $253,897. This suggests that while property values have been appreciating, affordability may have become a concern for some potential buyers in recent years.
The relationship between federal interest rates and homeownership rates in zip code 17087 appears to follow typical patterns. From 2013 to 2016, when interest rates were historically low (ranging from 0.11% to 0.40%), homeownership increased from 77% to 80%. As interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), homeownership rates initially continued to increase, reaching a peak of 84% in 2018, before starting to decline. This lag effect is not uncommon, as changes in interest rates often take time to fully impact the housing market.
Renter percentages and average rent prices in zip code 17087 have shown an inverse relationship to homeownership trends. As homeownership increased from 2013 to 2018, the percentage of renters decreased from 23% to 16%. During this period, average rent prices rose from $831 in 2013 to $996 in 2018, a 19.9% increase. Interestingly, as the renter percentage began to increase slightly from 2019 to 2022 (from 17% to 21%), average rent prices continued to rise more steeply, reaching $1,104 in 2022. This represents a 33% increase in average rent from 2013 to 2022, outpacing the growth in the renter population.
In 2023 and 2024, the average home prices in zip code 17087 continued their upward trajectory, reaching $267,375 in 2023 and $276,641 in 2024. This represents a 5.3% and 3.5% year-over-year increase, respectively. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, potentially impacting affordability and future homeownership rates in the area.
Looking ahead, based on the observed trends, we can predict that average home prices in zip code 17087 will likely continue to appreciate over the next five years, albeit at a potentially slower rate due to higher interest rates. Average rent prices are also expected to increase, driven by both housing market pressures and potential shifts towards renting if homeownership becomes less affordable. However, the rate of increase may moderate as the market adjusts to economic conditions and local housing supply and demand factors.
In summary, zip code 17087 has experienced a general trend of increasing homeownership rates and rising property values over the past decade. However, recent years have shown a slight reversal in homeownership trends, possibly due to affordability concerns as both home prices and interest rates have increased. The rental market has seen consistent growth in average rents, reflecting the overall appreciation of the local real estate market. These trends suggest a dynamic housing market in Richland, Pennsylvania, that continues to evolve in response to economic factors and local conditions.
