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Rising Home Values and Ownership Trends in Zip Code 17401: York'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 17401 encompasses York, Pennsylvania, a historic urban area known for its rich industrial heritage. This zip code has experienced significant fluctuations in homeownership rates and housing prices over the past decade, with a general trend towards increased renting and rising average home values.
The homeownership rate in zip code 17401 has shown a notable decline from 2013 to 2019, dropping from 30% to 25%. However, there has been a reversal of this trend in recent years, with ownership rates increasing to 32% by 2022. This shift coincides with substantial changes in average home prices. In 2013, the average home price was $40,478, which steadily increased to $96,445 by 2022, representing a remarkable 138% increase over nine years. The most dramatic rise occurred between 2020 and 2022, with average home prices surging from $63,630 to $96,445, a 52% increase in just two years.
Federal interest rates have played a significant role in shaping homeownership trends in zip code 17401. The period of ultra-low interest rates from 2013 to 2021, where rates remained below 1% for several years, initially corresponded with declining homeownership. However, as interest rates began to rise in 2022 to 1.68%, there was a noticeable uptick in homeownership, possibly due to buyers rushing to secure mortgages before rates increased further.
Renter percentages in zip code 17401 have generally moved inversely to homeownership rates, peaking at 75% in 2018 and 2019 before declining to 68% in 2022. Average rent prices have shown a gradual upward trend, increasing from $830 in 2013 to $853 in 2022, with some fluctuations in between. The highest average rent was recorded in 2021 at $906, possibly reflecting increased demand as the population grew from 17,664 in 2020 to 17,870 in 2021.
In 2023, the average home price in zip code 17401 continued its upward trajectory, reaching $106,992. This represents a further 11% increase from 2022. The trend has persisted into 2024, with average home prices climbing to $118,673, an additional 11% rise. Notably, federal interest rates have also increased significantly, reaching 5.02% in 2023 and 5.33% in 2024, levels not seen since before the 2008 financial crisis.
Looking ahead, predictive models suggest that average home prices in zip code 17401 may continue to rise over the next five years, potentially reaching around $150,000 by 2029. This projection is based on the strong upward trend observed in recent years. Average rent prices are also expected to increase, albeit at a more moderate pace, potentially reaching approximately $950 by 2029. These predictions assume continued economic growth and stable demand for housing in the area.
In summary, zip code 17401 has witnessed a complex interplay between homeownership rates, average home prices, and rental market dynamics. The recent resurgence in homeownership, despite rapidly rising home prices and increasing interest rates, suggests a robust demand for property ownership in the area. The continued upward trajectory of both home prices and rents indicates a strong housing market in York, with potential opportunities and challenges for both buyers and renters in the coming years.
