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Zip Code 15005: Rising Home Values and High Ownership Rates in Economy, PA
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
Economy, Pennsylvania, zip code 15005, presents an interesting case study in homeownership and real estate trends. This suburban area has experienced notable shifts in its housing market over the past decade, with a strong tendency towards homeownership and rising property values. The homeownership rate in Economy has shown a steady increase from 2013 to 2022. In 2013, 81% of residents owned their homes, and this figure rose to 86% by 2022. This upward trend in homeownership coincided with a significant increase in average home prices. In 2013, the average home price was $142,654, which climbed to $211,152 by 2022, representing a 48% increase over nine years. This correlation suggests that despite rising home prices, residents in this area have maintained a strong preference for homeownership.
Federal interest rates have played a role in shaping homeownership trends in Economy. From 2013 to 2016, interest rates remained extremely low, hovering around 0.1-0.4%. During this period, homeownership increased from 81% to 84%. The low interest rates likely made mortgages more accessible, encouraging home buying. As interest rates began to rise more significantly from 2017 onwards, reaching 1.68% in 2022, homeownership rates stabilized at 86%, indicating a resilient homeownership market even in the face of increasing borrowing costs.
While homeownership has been on the rise, the rental market in Economy has experienced some fluctuations. The percentage of renters decreased from 19% in 2013 to 14% in 2022. Despite this decline in the renter population, average rent prices have shown a general upward trend. In 2013, the average rent was $752, which increased to $1,153 by 2022, a 53% rise. This substantial increase in rent prices, coupled with the declining percentage of renters, suggests a tightening rental market with potentially limited supply relative to demand.
Looking at the most recent data, the average home price in Economy continued its upward trajectory, reaching $212,964 in 2023 and jumping to $231,226 in 2024. This represents an 8.6% increase from 2023 to 2024, indicating a robust housing market. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, which could potentially impact future homebuying activity.
Applying predictive models to forecast 5-year trends, we can expect average home prices in Economy to continue rising, albeit potentially at a more moderate pace due to higher interest rates. Average home prices could reach around $260,000 to $280,000 by 2029. For rent prices, the trend suggests continued increases, potentially reaching an average of $1,300 to $1,400 per month by 2029, assuming the current economic conditions and housing supply dynamics persist.
In summary, Economy has demonstrated a strong preference for homeownership, with rates increasing despite rising home prices. The rental market, while smaller, has seen significant price increases. The interplay between federal interest rates, home prices, and rental rates has shaped a housing market that favors ownership but also presents challenges for both buyers and renters due to rising costs. The coming years are likely to see continued growth in property values and rental prices, though the pace may be influenced by broader economic factors and local market conditions.
