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Rising Home Values and Stable Ownership: A Decade of Housing Trends in Zip Code 16851
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
Lemont, situated in zip code 16851 in Pennsylvania, has experienced significant changes in its housing market over the past decade. This analysis explores the trends in homeownership rates, average home prices, and average rent prices, providing insights into the local real estate market dynamics. The homeownership rate in Lemont has shown an overall increase from 64% in 2020 to 77% in 2022. This trend coincides with a steady rise in average home prices. In 2013, the average home price was $202,951, and by 2022, it had increased to $318,804, representing a substantial 57% growth over nine years. The relationship between federal interest rates and homeownership rates in Lemont shows some correlation. As interest rates remained low from 2013 to 2020, ranging from 0.09% to 0.38%, homeownership rates generally remained stable or increased slightly. However, the sharp rise in interest rates to 1.68% in 2022 did not immediately impact the homeownership rate, which actually increased to 77% that year, possibly due to other local factors or a lag in market response.
Renter percentages in Lemont have inversely mirrored the homeownership trends, decreasing from 36% in 2020 to 23% in 2022. Average rent prices have shown volatility during this period. In 2013, the average rent was $807, rising to $945 in 2020, then spiking to $1,312 in 2021 before dropping back to $943 in 2022. This fluctuation in rent prices, particularly the sharp increase in 2021, may have influenced some renters to transition to homeownership, contributing to the increased homeownership rate in 2022.
In 2023 and 2024, the average home prices in Lemont continued their upward trajectory, reaching $336,199 in 2023 and $348,385 in 2024. This represents a 9.2% increase from 2022 to 2024. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, potentially impacting affordability and future homeownership rates.
Looking ahead, based on the historical data and current trends, we can project that average home prices in Lemont may continue to rise over the next five years, potentially reaching around $400,000 by 2029. However, the rate of increase might slow down due to the higher interest rates. Average rent prices, which have shown volatility, may stabilize and gradually increase, potentially reaching around $1,100 to $1,200 per month by 2029, assuming no major economic shifts.
In summary, Lemont has experienced a trend of increasing homeownership rates and rising average home prices over the past decade. The recent spike in interest rates and the continued growth in home prices suggest a potential shift in the market dynamics. While homeownership has been favored in recent years, the affordability factor influenced by rising prices and higher interest rates may impact future trends in both homeownership and rental markets in this zip code.
