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Rising Homeownership and Falling Rents: The Transformation of Zip Code 07827 in Milford, 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 07827, located in Milford, Pennsylvania, has experienced notable shifts in homeownership and rental dynamics over the past decade. This area, known for its scenic beauty along the Delaware River, has seen a significant increase in homeownership rates coupled with fluctuating average rent prices.
The trend in homeownership in zip code 07827 shows a remarkable increase from 68% in 2013 to 91% in 2022. This substantial rise in owner-occupied housing coincided with varied movements in average rent prices. In 2013, the average rent was $790, which peaked at $849 in 2015 before experiencing a dramatic decline to $102 by 2022. This inverse relationship suggests that as more residents became homeowners, the demand for rental properties decreased, potentially leading to lower average rent prices.
The relationship between federal interest rates and homeownership rates in this zip code presents an interesting pattern. Despite the general trend of lower interest rates encouraging homeownership, the area saw its most significant increase in ownership during a period of rising interest rates. For instance, from 2016 to 2022, when interest rates climbed from 0.4% to 1.68%, homeownership in the zip code rose from 70% to 91%. This suggests that local factors may have had a stronger influence on homeownership than national interest rate trends in this particular area.
Renter percentages in zip code 07827 have shown a consistent decline, dropping from 28% in 2013 to just 9% in 2022. This decrease aligns with the falling average rent prices, which saw significant volatility. The average rent reached its highest point of $849 in 2015 when renters made up 29% of the population, but then plummeted to $102 by 2022 when the renter population had shrunk to 9%. This dramatic decrease in both renter percentage and average rent prices occurred despite a slight increase in population from 4,067 in 2015 to 4,048 in 2022, indicating a strong shift towards homeownership in the area.
In 2023 and 2024, the federal interest rates increased significantly to 5.02% and 5.33% respectively. This sharp rise in interest rates could potentially impact future homeownership trends in the zip code, as higher borrowing costs may make purchasing homes less affordable for some residents.
Looking ahead, predictive models suggest that average home prices in zip code 07827 may stabilize or experience modest growth over the next five years, given the high rate of homeownership and potential market saturation. Average rent prices, having reached a very low point, might see a slight increase as the rental market potentially begins to recover, albeit remaining well below their peak levels from earlier years.
In summary, zip code 07827 has witnessed a remarkable transformation in its housing landscape. The area has shifted dramatically towards homeownership, with owner-occupied housing reaching 91% by 2022. This change has been accompanied by a significant decrease in both the renter population and average rent prices. These trends paint a picture of a community that has become increasingly oriented towards homeownership, potentially driven by local economic factors and community preferences that have outweighed the influence of national interest rate trends.
