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Zip Code 15901: Johnstown's Fluctuating Home Values and Ownership Rates
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 15901, located in Johnstown, Pennsylvania, covers an area of 1.86 square miles. This urban area has experienced fluctuations in homeownership rates and housing prices over the years, with a general trend towards increasing average home prices and rent costs.
The homeownership rate in zip code 15901 has shown variability over the years. In 2013, the homeownership rate was 33%, remaining relatively stable until 2016. There was a decline to 30% in 2017 and 2018, followed by a further drop to 29% in 2019. The trend reversed in 2020, with homeownership increasing to 34% and further to 39% in 2021 and 2022. This upward trend in homeownership coincided with a general increase in average home prices. The average home price rose from $32,678 in 2019 to $37,212 in 2022, representing a 13.9% increase over three years.
The relationship between federal interest rates and homeownership rates in this zip code appears to follow the general economic principle that lower interest rates tend to encourage homeownership. The period from 2020 to 2022 saw historically low interest rates (0.38% in 2020, 0.08% in 2021, and 1.68% in 2022), which coincided with the increase in homeownership rates from 34% to 39%. This suggests that the more favorable borrowing conditions may have contributed to the rise in homeownership during this period.
Renter percentages in zip code 15901 have generally been higher than homeownership rates, but have shown some fluctuation. The renter percentage peaked at 71% in 2019 before decreasing to 66% in 2020 and further to 61% in 2021 and 2022. Interestingly, average rent prices have not always moved in tandem with renter percentages. Despite the decrease in renter percentage, the average rent price increased from $560 in 2019 to $641 in 2021, a 14.5% rise. However, it then decreased to $574 in 2022, possibly reflecting the shift towards homeownership.
Looking at the most recent data, the average home price in zip code 15901 decreased to $31,395 in 2023 and further to $28,780 in 2024. This represents a significant drop of 22.7% from the 2022 price of $37,212. Concurrently, federal interest rates have risen sharply to 5.02% in 2023 and 5.33% in 2024, which may have contributed to the cooling of the housing market.
Based on the historical data and recent trends, we can make some predictions for the next five years. Average home prices may continue to face downward pressure in the short term due to high interest rates, but could stabilize and potentially start to increase again if interest rates decrease. Rent prices might see moderate increases as the rental market adjusts to changes in homeownership rates and overall housing demand.
In summary, zip code 15901 has experienced significant shifts in homeownership rates and housing prices over the past decade. The area has seen a recent uptick in homeownership, possibly driven by historically low interest rates from 2020 to 2022. However, the sharp rise in interest rates in 2023 and 2024 has coincided with a notable decrease in average home prices. These dynamics, along with fluctuations in rent prices and renter percentages, highlight the complex interplay of factors influencing the local housing market.
