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Rising Home Values and Stable Ownership: Zip Code 19504's Unique Rural Housing Trends
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 19504, located in Hereford, Pennsylvania, has experienced notable shifts in its housing market over the past decade. This area has seen changes in homeownership rates, average home prices, and average rent prices that reflect broader economic trends and local market dynamics.
The homeownership rate in zip code 19504 has shown a slight decline over the years, moving from 89% in 2013 to 86% in 2022. This gradual decrease coincides with an overall increase in average home prices. In 2013, the average home price was $243,449, which steadily rose to $392,188 by 2022, representing a substantial 61% increase over this period. This trend suggests that rising home prices may have made homeownership less attainable for some residents, potentially contributing to the slight decrease in ownership rates.
Federal interest rates have played a significant role in shaping homeownership trends in the area. From 2013 to 2016, when interest rates were historically low (ranging from 0.11% to 0.4%), homeownership rates remained relatively stable, hovering around 87-90%. However, as interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), there was a noticeable dip in homeownership to 85% by 2018. This trend aligns with the general principle that lower interest rates tend to encourage homeownership due to more affordable financing options.
The rental market in zip code 19504 has shown an interesting trend, with the percentage of renters increasing from 8% in 2013 to 14% in 2022. This growth in the renter population has occurred despite fluctuations in average rent prices. Average rent increased from $1,191 in 2013 to a peak of $1,268 in 2015, before declining to $1,083 in 2022. The increase in renters despite lower average rents could indicate a shift in housing preferences or economic factors making homeownership less accessible for some residents.
Looking at the most recent data, the average home price in zip code 19504 reached $405,204 in 2023 and further increased to $419,590 in 2024. This continued upward trajectory in home prices occurs alongside a significant rise in federal interest rates, which stood at 5.02% in 2023 and 5.33% in 2024. These higher interest rates, combined with rising home prices, may present challenges for potential homebuyers in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 19504 will continue to rise, potentially reaching around $480,000 by 2029. This projection is based on the consistent upward trend observed over the past decade. For average rent prices, the forecast suggests a more moderate increase, potentially reaching approximately $1,200 by 2029, assuming the market corrects from the recent dip and aligns with long-term growth patterns.
In summary, zip code 19504 has experienced a gradual shift towards more renters and fewer homeowners over the past decade, likely influenced by rising home prices and fluctuating interest rates. The area has seen substantial growth in property values, with average home prices increasing by over 60% from 2013 to 2022. Despite some fluctuations, the rental market has expanded, indicating changing housing preferences or economic realities for residents. The recent surge in both home prices and interest rates may continue to shape the local housing market dynamics in the coming years.
