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Rising Home Values and Shifting Ownership in Zip Code 17551: Millersville's Changing Real Estate Landscape
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 17551, located in Millersville, Pennsylvania, has experienced significant changes in its real estate landscape over the past decade. This area, known for its proximity to Millersville University, has seen fluctuations in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market dynamics.
The ownership percentage in zip code 17551 has shown a gradual decline from 2013 to 2022. In 2013, 70% of housing units were owner-occupied, but by 2022, this figure had decreased to 62%. Conversely, average home prices have demonstrated a consistent upward trend. In 2013, the average home price was $179,455, which steadily increased to $289,136 by 2022, representing a substantial 61% increase over this period. This inverse relationship between homeownership rates and average home prices suggests that rising property values may have made homeownership less accessible for some residents.
Federal interest rates have played a significant role in shaping homeownership trends in zip code 17551. From 2013 to 2016, interest rates remained historically low, hovering around 0.1% to 0.4%. During this period, homeownership rates remained relatively stable, ranging from 69% to 71%. However, as interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, homeownership rates declined more rapidly, dropping from 65% in 2017 to 62% in 2022. This trend aligns with the general expectation that higher interest rates can deter potential homebuyers due to increased borrowing costs.
Renter percentages in zip code 17551 have shown an overall increase from 30% in 2013 to 38% in 2022, mirroring the decline in homeownership. Interestingly, average rent prices have also risen significantly during this period. In 2013, the average rent was $1,014, which increased to $1,227 by 2022, representing a 21% increase. This upward trend in both renter percentages and average rent prices suggests a growing demand for rental properties in the area, possibly driven by factors such as the increasing student population or residents priced out of the homeownership market.
In 2023 and 2024, the real estate market in zip code 17551 continued to evolve. The average home price reached $308,319 in 2023 and further increased to $322,285 in 2024, marking a 11.5% rise over two years. Notably, federal interest rates also saw a significant jump, rising from 5.02% in 2023 to 5.33% in 2024. These higher interest rates, combined with escalating home prices, may further impact homeownership affordability in the area.
Looking ahead, predictive models suggest that both average home prices and rent prices in zip code 17551 are likely to continue their upward trajectory over the next five years. Home prices are projected to increase by approximately 3-5% annually, potentially reaching around $375,000 by 2029. Average rent prices are expected to rise at a similar rate, potentially surpassing $1,400 per month within the same timeframe. These projections are based on historical trends and current market conditions, assuming relative economic stability.
In summary, zip code 17551 has experienced a notable shift towards a more rental-oriented market, with declining homeownership rates and rising property values. The interplay between federal interest rates, average home prices, and rental demand has shaped a dynamic real estate landscape. As the area continues to evolve, balancing affordability with market growth will likely be a key challenge for local policymakers and real estate stakeholders.
