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Rising Home Values and Shifting Ownership in Zip Code 18056: A Decade of Change in Hereford, Pennsylvania
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 18056, located in Hereford, Pennsylvania, has experienced significant changes in its real estate landscape over the past decade. This small community has seen notable shifts in homeownership rates and property values, reflecting broader economic trends and local market dynamics. From 2013 to 2022, the homeownership rate in zip code 18056 underwent substantial changes. In 2013, the area had a high 90% homeownership rate, which remained relatively stable until 2019, peaking at 98%. However, a significant shift occurred in subsequent years, with homeownership dropping to 76% by 2022. This decline coincided with a substantial increase in average home prices. In 2013, the average home price was $131,725, which steadily rose to $202,089 by 2022, marking a 53.4% increase over this period. The inverse relationship between homeownership rates and average home prices suggests that rising property values may have made homeownership less attainable for some residents.
The federal interest rate trends provide additional context to these homeownership patterns. From 2013 to 2016, interest rates remained exceptionally low, hovering around 0.1-0.4%. This period coincided with stable and high homeownership rates in the zip code. As interest rates began to rise more significantly from 2017 onwards, reaching 1.68% in 2022, we observe the start of the decline in homeownership rates. This correlation suggests that increasing interest rates may have contributed to the reduced affordability of homeownership in the area.
Conversely, the renter population in zip code 18056 has grown substantially. In 2013, only 10% of residents were renters, but by 2022, this figure had more than doubled to 23%. This increase in renters coincided with fluctuations in average rent prices. Average rent rose from $873 in 2013 to $959 in 2017, then unexpectedly dropped to $778 in 2018. However, it rebounded dramatically, reaching $1,673 by 2022, a 91.6% increase from 2013. This sharp rise in rent prices, coupled with the growing renter population, indicates a shifting preference or necessity towards renting, possibly driven by the increasing costs of homeownership.
In 2023 and 2024, the real estate market in zip code 18056 continued its upward trajectory. The average home price reached $212,330 in 2023 and further increased to $223,883 in 2024, representing a 10.8% rise over these two years. This growth occurred despite a significant increase in federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024, potentially impacting mortgage affordability.
Looking ahead, predictive models suggest that both average home prices and rent prices in zip code 18056 are likely to continue their upward trend over the next five years. Home prices are projected to increase by approximately 3-5% annually, potentially reaching around $260,000 by 2029. Average rent prices are expected to grow at a similar rate, possibly exceeding $2,000 per month within the same timeframe.
In summary, zip code 18056 has experienced a significant shift from a predominantly homeowner community to one with a growing renter population. This change has been accompanied by substantial increases in both home values and rent prices. The interplay between rising property values, increasing interest rates, and changing demographics suggests a dynamic and evolving real estate market in this Pennsylvania community.
