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Zip Code 15456: Rising Home Values and Ownership Rates in Lemont Furnace, 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
Lemont Furnace, located in zip code 15456 in Pennsylvania, has experienced significant shifts in homeownership rates and housing prices over the past decade. This analysis explores the trends in ownership percentages, average home prices, and average rent prices in this area.
From 2013 to 2022, Lemont Furnace saw a substantial increase in homeownership rates, rising from 71% to 85%. This 14 percentage point increase indicates a strong trend towards homeownership in the area. Concurrently, average home prices in the zip code have shown a general upward trend. In 2013, the average home price was $99,063, which increased to $128,717 by 2022, representing a 29.9% increase over this period.
The relationship between federal interest rates and homeownership rates in Lemont Furnace aligns with established trends. As interest rates remained low from 2013 to 2020, hovering between 0.08% and 0.40%, homeownership rates steadily increased. This correlation supports the notion that lower interest rates encourage homeownership by making mortgage financing more accessible and affordable. The most significant jump in homeownership occurred between 2020 and 2022, rising from 80% to 85%, despite a slight increase in interest rates to 1.68% in 2022.
Conversely, the percentage of renters in Lemont Furnace has decreased from 29% in 2013 to 15% in 2022. This decline in the renter population coincides with an overall increase in average rent prices. In 2013, the average rent was $567, which rose to $781 by 2022, marking a 37.7% increase. It's worth noting that despite the declining renter population, rent prices have continued to rise, possibly due to increased demand for the limited rental properties available or improvements in rental unit quality.
Looking at the most recent data, the average home price in zip code 15456 for 2023 was $122,056, showing a slight decrease from the 2022 figure. However, in 2024, the average home price has rebounded to $131,940, representing an 8.1% increase from the previous year. This increase occurs despite the federal interest rate rising to 5.33% in 2024, which is significantly higher than in previous years.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in Lemont Furnace will continue to rise, albeit at a more moderate pace. The average home price is projected to reach approximately $145,000 by 2029. Average rent prices are also expected to increase, potentially reaching around $900 per month in the same timeframe. These projections assume relatively stable economic conditions and continued demand for housing in the area.
In summary, Lemont Furnace has experienced a significant shift towards homeownership over the past decade, with a corresponding increase in average home prices. Despite rising interest rates, the trend towards homeownership remains strong. The rental market, while shrinking in terms of population, has seen steady increases in average rent prices. These trends suggest a robust and evolving housing market in zip code 15456, with a clear preference for homeownership among residents.
