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Rising Home Values and Shifting Ownership in Zip Code 16426: McKean'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 16426, located in McKean, Pennsylvania, has witnessed notable shifts in homeownership rates and housing prices over the past decade. This area, characterized by its suburban feel, has experienced fluctuations in both ownership percentages and average home prices, reflecting broader economic trends and local market dynamics.
The homeownership rate in zip code 16426 has shown a slight downward trend from 2013 to 2022. In 2013, the area boasted a high 91% homeownership rate, which gradually decreased to 86% by 2022. This 5% decrease in homeownership coincided with a significant increase in average home prices. The average home price in 2013 was $168,678, rising steadily to reach $246,310 in 2022, representing a substantial 46% increase over this period. This inverse relationship suggests that rising home prices may have made homeownership less attainable for some residents.
Federal interest rates have played a crucial role in shaping homeownership trends in zip code 16426. The period from 2013 to 2016 saw historically low interest rates, hovering around 0.1% to 0.4%. During this time, homeownership rates remained relatively stable at around 90%. However, as interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, homeownership rates started to decline more noticeably. This trend aligns with the general principle that lower interest rates tend to encourage homeownership by making mortgages more affordable.
The renter population in zip code 16426 has shown a corresponding increase as homeownership rates declined. In 2013, only 8% of the population were renters, but this figure rose to 14% by 2022. Interestingly, average rent prices have also experienced significant fluctuations during this period. The average rent was $740 in 2013, dropping to a low of $658 in 2016 before climbing to $828 in 2022, marking an overall increase of 12% from 2013 to 2022. The population growth from 3,229 in 2013 to 3,331 in 2022 may have contributed to the increased demand for rental properties, driving up rent prices.
Moving into more recent years, the average home price in zip code 16426 continued its upward trajectory, reaching $260,611 in 2023 and further increasing to $273,120 in 2024. This represents a 10.9% increase from 2022 to 2024. Concurrently, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024, which may impact future homeownership rates and housing affordability in the area.
Looking ahead, based on historical trends and current market conditions, we can project that average home prices in zip code 16426 will continue to rise over the next five years, potentially reaching around $320,000 by 2029. Average rent prices are also expected to increase, possibly surpassing $1,000 per month within the same timeframe. These projections assume a continuation of current economic conditions and local market trends.
In summary, zip code 16426 has experienced a gradual shift towards increased renting, driven by rising home prices and fluctuating interest rates. The inverse relationship between homeownership rates and average home prices, coupled with the impact of federal interest rates, has shaped the local housing market. As the area continues to grow and evolve, these trends are likely to persist, potentially leading to further changes in the housing landscape of McKean, Pennsylvania.
