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Rising Home Values and Strong Ownership in Zip Code 17026: Fredericksburg's Decade of Growth
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
Fredericksburg, located in zip code 17026 in Pennsylvania, is a small community that has experienced notable changes in its housing market over the past decade. This area has maintained a high rate of homeownership while seeing significant fluctuations in both average home prices and average rent prices.
The homeownership rate in zip code 17026 has remained consistently high, ranging from 84% to 90% between 2013 and 2022. This strong preference for homeownership has persisted despite substantial increases in average home prices. In 2010, the average home price was $182,265, which steadily rose to $289,835 by 2022, representing a 59% increase over 12 years. Interestingly, the highest homeownership rate of 90% was observed in 2020 and 2021, coinciding with average home prices of $230,772 and $257,671 respectively.
Federal interest rates have played a significant role in shaping homeownership trends in the area. The period from 2010 to 2016 saw historically low interest rates, ranging from 0.09% to 0.40%, which likely contributed to the maintenance of high homeownership rates despite rising home prices. As interest rates began to climb from 2017 (1.00%) to 2019 (2.16%), homeownership rates remained stable at around 85-86%, suggesting a strong local preference for owning rather than renting.
The rental market in zip code 17026 has shown interesting trends as well. The percentage of renters has fluctuated between 10% and 16% from 2013 to 2022. Average rent prices have been volatile, starting at $883 in 2013, dropping to $578 in 2017, and then rising again to $851 in 2022. Despite these fluctuations, the renter population has remained relatively stable, indicating a consistent demand for rental properties in the area.
Looking at the most recent data, average home prices in zip code 17026 continued to rise, reaching $308,064 in 2023 and $319,594 in 2024. This represents a 10.2% 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 impact affordability and could potentially influence future homeownership rates in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 17026 will continue to rise, potentially reaching around $350,000 by 2029. This projection is based on the consistent upward trend observed over the past decade. For average rent prices, we expect a more moderate increase, potentially reaching around $950 per month by 2029, assuming the local economy remains stable and demand for rental properties continues.
In summary, zip code 17026 has demonstrated a strong preference for homeownership, maintaining high rates even as average home prices have significantly increased. The rental market, while smaller, has shown resilience with fluctuating but generally increasing average rent prices. The recent sharp rise in interest rates, coupled with continuing increases in home prices, may present challenges to maintaining the high homeownership rates in the future. However, the area's historical trends suggest a robust housing market that has thus far weathered various economic conditions.
