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Rising Home Values and Strong Ownership in Zip Code 17073: Newmanstown's Resilient Housing Market
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
Newmanstown, located in zip code 17073 in Pennsylvania, has experienced notable shifts in its housing market over the past decade. This area has maintained a strong preference for homeownership, with ownership rates consistently above 79% throughout the observed period. The trends in average home prices and average rent have shown interesting patterns, reflecting the dynamic nature of the local real estate market.
The homeownership rate in zip code 17073 has fluctuated but remained high, reaching its peak of 86% in 2021. This trend coincides with significant changes in average home prices. From 2013 to 2022, average home prices in the area increased by 57.9%, rising from $178,148 to $281,318. Notably, the most substantial growth occurred between 2020 and 2022, with a 25.3% increase in just two years. This rapid appreciation in home values did not seem to deter homeownership, as the ownership rate remained stable at 84% in 2022.
Federal interest rates have played a crucial role in shaping homeownership trends. The period from 2013 to 2021 saw historically low interest rates, particularly from 2020 to 2021 when rates were below 0.4%. This low-interest environment likely contributed to the sustained high homeownership rates in zip code 17073, making mortgage financing more accessible and attractive to potential buyers.
Renter percentages in the area have inversely mirrored homeownership rates, reaching a low of 14% in 2021. Interestingly, average rent prices have shown a different trajectory compared to home prices. From 2013 to 2022, average rent increased by only 5.5%, from $853 to $900. This modest growth in rent prices, especially when compared to the significant rise in home values, may have influenced some residents to transition from renting to homeownership.
In 2023 and 2024, the housing market in zip code 17073 continued its upward trajectory. The average home price reached $295,679 in 2023 and further increased to $305,658 in 2024, representing a 3.4% year-over-year growth. This continued appreciation occurred despite a significant rise in federal interest rates, which reached 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homeownership trends and price growth in the area.
Looking ahead, based on the historical data and current trends, we can project potential scenarios for the next five years. If the current growth rate persists, average home prices in zip code 17073 could potentially reach around $360,000 by 2029. However, this growth may be moderated by the higher interest rate environment. For average rent prices, if the modest growth trend continues, we might see prices approaching $950 to $1,000 per month by 2029. These projections assume relative stability in economic conditions and local market factors.
In summary, zip code 17073 has demonstrated a robust housing market characterized by high homeownership rates and significant appreciation in average home values. The area has maintained a strong preference for homeownership despite substantial increases in home prices, possibly influenced by the low-interest-rate environment of the past decade. The rental market has shown more stability in pricing, which may have contributed to the transition of some renters to homeowners. As interest rates have risen in recent years, it will be crucial to monitor how this affects future homeownership rates and price trends in the area.
