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Rising Home Values and Shifting Ownership in Zip Code 18092: 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 18092, located in Hereford, Pennsylvania, has experienced notable changes in homeownership rates and housing prices over the past decade. This area has maintained a high percentage of owner-occupied housing units, with some fluctuations in recent years. The trends in average home prices and average rent have shown interesting patterns that reflect both local and broader economic factors.
The homeownership rate in zip code 18092 has generally remained high, though it has experienced some variability. In 2013, the homeownership rate stood at 88%, and it reached its peak of 92% in 2014. However, there has been a slight downward trend in recent years, with the rate decreasing to 85% in 2022. This decline coincides with a significant increase in average home prices. From 2013 to 2022, average home prices in the area rose from $262,545 to $416,446, representing a substantial 58.6% increase over this period.
The relationship between federal interest rates and homeownership rates in this zip code shows some interesting patterns. As interest rates remained low from 2013 to 2016, hovering around 0.1% to 0.4%, homeownership rates stayed relatively stable, ranging from 88% to 92%. However, as interest rates began to rise more significantly from 2017 onwards, reaching 1.68% in 2022, there was a gradual decline in homeownership rates, dropping to 85% by 2022. This trend aligns with the general principle that lower interest rates tend to encourage homeownership due to more affordable financing options.
The renter percentage in zip code 18092 has shown an inverse relationship to homeownership rates, naturally increasing as homeownership decreased. The renter occupancy rate rose from 11% in 2013 to 15% in 2022. Interestingly, average rent prices have fluctuated during this period. In 2013, the average rent was $1,175, which decreased to $950 in 2018 before rising again to $1,113 in 2022. These fluctuations in rent prices don't seem to directly correlate with the increasing renter percentage, suggesting that other factors, such as local economic conditions or housing supply, may be influencing rent prices in this area.
Looking at the most recent data, average home prices in zip code 18092 continued to rise, reaching $434,094 in 2023 and $454,556 in 2024. This represents a further 9.2% increase from 2022 to 2024. Concurrently, federal interest rates have also increased significantly, rising to 5.02% in 2023 and 5.33% in 2024. These higher interest rates may put pressure on homeownership rates in the coming years if they persist, potentially making mortgage financing more challenging for prospective buyers.
Applying predictive models to forecast 5-year trends, we can anticipate continued growth in average home prices, albeit potentially at a slower rate due to higher interest rates. Average home prices could potentially reach around $500,000 by 2029 if current trends continue. For average rent prices, we might expect a more moderate increase, potentially reaching around $1,300 to $1,400 per month by 2029, assuming stable economic conditions and housing demand in the area.
In summary, zip code 18092 has experienced a gradual shift from very high homeownership rates to slightly lower rates, coinciding with significant increases in average home prices. The inverse relationship between federal interest rates and homeownership rates is evident, with recent increases in interest rates potentially impacting future homeownership trends. Despite some fluctuations, average rent prices have shown an overall upward trend, reflecting the area's desirability and economic factors. As we look to the future, continued monitoring of these trends will be crucial for understanding the evolving housing market in this Pennsylvania community.
