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Zip Code 15840: Falls Creek's Housing Market Resilience Amid Rising Home Values
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 15840, located in Falls Creek, Pennsylvania, has experienced notable shifts in homeownership rates and housing prices over the past decade. This area has seen a general trend towards increased homeownership, coupled with rising average home prices and rent costs.
The ownership percentage in zip code 15840 has shown a significant upward trend, increasing from 70% in 2013 to 75% in 2022. This rise in homeownership coincided with a substantial increase in average home prices. In 2013, the average home price was $77,095, which steadily climbed to $110,560 by 2022, representing a 43.4% increase over this period. This trend suggests a strong correlation between rising home values and homeownership rates in the area.
Federal interest rates have played a crucial role in shaping homeownership trends. The period from 2013 to 2016 saw historically low interest rates, hovering around 0.1% to 0.4%. During this time, homeownership in zip code 15840 increased from 70% to 76% by 2017, likely due to more affordable financing options. As interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, the homeownership rate stabilized around 75-78%, indicating a continued strong preference for homeownership despite higher borrowing costs.
Renter percentages in zip code 15840 have inversely mirrored the homeownership trends, decreasing from 30% in 2013 to 25% in 2022. Interestingly, despite this decline in the renter population, average rent prices have risen substantially. The average rent increased from $614 in 2013 to $884 in 2022, a 44% increase. This surge in rent prices, despite a shrinking renter population, suggests a tightening rental market, possibly due to limited rental inventory or improved quality of available rentals.
In 2023 and 2024, the housing market in zip code 15840 continued its upward trajectory. The average home price reached $111,803 in 2023 and further increased to $114,162 in 2024, representing a 3.2% growth over these two years. This growth occurred despite a significant rise in federal interest rates, which jumped to 5.02% in 2023 and 5.33% in 2024, potentially indicating strong underlying demand in the local housing market.
Looking ahead, based on the observed trends, we can forecast continued growth in both home prices and rent costs for zip code 15840 over the next five years. Average home prices are projected to increase by approximately 2-3% annually, potentially reaching around $130,000 by 2029. Average rent prices are expected to follow a similar trajectory, possibly surpassing $1,000 per month within the same timeframe.
In summary, zip code 15840 has demonstrated a robust housing market characterized by increasing homeownership rates, rising home values, and escalating rent prices. The area has shown resilience to rising interest rates, maintaining strong homeownership levels. These trends, coupled with the recent price increases despite higher interest rates, suggest a continued strong and potentially competitive housing market in this Pennsylvania borough for the foreseeable future.
