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Zip Code 15637: Rising Home Values and Strong Ownership Trends in Herminie, 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
Herminie, located in zip code 15637 in Pennsylvania, is a small community that has experienced notable shifts in its housing market over the past decade. This analysis explores the trends in homeownership rates, average home prices, and average rent prices, providing insights into the local real estate landscape. The homeownership rate in Herminie has shown a general upward trend, particularly in recent years. In 2013, the homeownership rate was 80%, and by 2022, it had increased to 87%. This significant rise in homeownership coincides with an overall increase in average home prices. In 2013, the average home price was $95,970, and it steadily climbed to $141,173 by 2022, representing a 47% increase over this period. This positive correlation suggests that despite rising prices, local residents have been increasingly able and willing to purchase homes.
The relationship between federal interest rates and homeownership rates in Herminie presents an interesting dynamic. From 2013 to 2020, when interest rates remained relatively low (ranging from 0.09% to 2.16%), homeownership rates fluctuated between 78% and 82%. However, as interest rates began to rise more sharply in 2022 (1.68%), the homeownership rate increased to 87%. This trend seems to contradict the general expectation that lower interest rates encourage homeownership, suggesting that other local factors may have a stronger influence on homeownership decisions in this area.
Renter percentages in Herminie have generally decreased as average rent prices have increased. In 2013, 20% of residents were renters, with an average rent of $764. By 2022, the percentage of renters had dropped to 13%, while the average rent had risen to $881, a 15% increase. This trend indicates that as renting became more expensive, fewer residents opted for rental properties. The decreasing population, from 2,085 in 2013 to 1,707 in 2022, may have also contributed to reduced demand for rental properties.
Looking at the most recent data, the average home price in Herminie reached $145,219 in 2023, showing continued growth. However, in 2024, there was a slight decrease to $142,843. This slight dip coincides with a further increase in federal interest rates, which rose to 5.33% in 2024 from 5.02% in 2023. These higher interest rates may be starting to impact home affordability and, consequently, prices in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in Herminie will continue to grow, but at a more moderate pace. The recent slight decrease in 2024 might indicate a temporary cooling in the market, but the overall trend suggests continued appreciation. Average rent prices are expected to follow a similar pattern, with steady but slower growth compared to previous years.
In summary, Herminie has experienced a significant increase in homeownership rates and average home prices over the past decade. The community has shown resilience in its housing market, with homeownership rates rising even as prices increased. The rental market has seen a decrease in the percentage of renters, possibly due to rising rent prices and a declining population. As we look to the future, the housing market in zip code 15637 is likely to continue evolving, with moderate growth expected in both home prices and rent rates.
