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Zip Code 16037: Rising Home Values and Strong Ownership in Harmony, 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
Zip code 16037, located in Harmony, Pennsylvania, has shown interesting trends in homeownership and housing prices over the past decade. This area has maintained a consistently high rate of owner-occupied housing, with a slight increase in recent years, while experiencing significant growth in average home prices.
The homeownership rate in zip code 16037 has remained relatively stable, with a slight upward trend. In 2013, the owner-occupied rate was 83%, and by 2022, it had increased to 86%. This 3% increase in homeownership occurred alongside a substantial rise in average home prices. In 2013, the average home price was $219,159, and by 2022, it had risen to $353,596, representing a 61.3% increase over nine years. This trend 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 homeownership trends in zip code 16037. From 2013 to 2016, when interest rates were extremely low (ranging from 0.11% to 0.40%), the homeownership rate remained steady at 83%. As interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), the homeownership rate actually increased slightly to 84% by 2020. This suggests that other factors, such as local economic conditions or housing market dynamics, may have had a stronger influence on homeownership in this area than national interest rates.
Regarding rental trends, the percentage of renter-occupied housing in zip code 16037 has shown a slight decrease, from 17% in 2013 to 14% in 2022. During this period, average rent prices experienced overall growth, albeit with some fluctuations. The average rent increased from $975 in 2013 to $1,000 in 2022, peaking at $1,090 in 2017. The population of the area has remained relatively stable, growing from 4,897 in 2013 to 4,978 in 2022, which may have contributed to the moderate changes in rental demand and prices.
In 2023 and 2024, the housing market in zip code 16037 continued to show strength. The average home price reached $359,064 in 2023 and further increased to $372,259 in 2024, representing a 3.7% year-over-year growth. This growth occurred despite the significant rise in federal interest rates, which stood at 5.02% in 2023 and 5.33% in 2024, highlighting the resilience of the local housing market.
Looking ahead, based on the historical trends and current market conditions, we can forecast continued growth in both average home prices and rent prices over the next five years. Average home prices are projected to increase by approximately 3-4% annually, potentially reaching around $440,000 by 2029. Average rent prices are expected to grow more modestly, at about 1-2% per year, potentially reaching $1,100 by 2029.
In summary, zip code 16037 has demonstrated a strong and growing preference for homeownership, with average home prices showing significant appreciation over the past decade. Despite rising interest rates and home prices, the area has maintained high levels of owner-occupied housing. The rental market, while smaller, has shown stability with moderate price growth. These trends, combined with the area's consistent population, suggest a robust and desirable housing market in Harmony, Pennsylvania.
