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Zip Code 16052: Steady Homeownership Amidst Rising Home Values in Prospect
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
Prospect, located in zip code 16052 in Pennsylvania, is a small community that has experienced interesting shifts in homeownership and housing prices over the past decade. This analysis explores the trends in ownership percentages, average home prices, and average rent prices, providing insights into the local real estate market dynamics. Homeownership in Prospect has remained consistently high, with slight fluctuations over the years. In 2013, the ownership rate was 85%, and by 2022, it had increased to 88%. This trend aligns with the changes in average home prices, which have shown significant growth. The average home price in 2016 was $202,777, and by 2022, it had risen to $282,647, representing a 39.4% increase over six years.
The relationship between federal interest rates and homeownership rates in Prospect shows an interesting pattern. Despite historically low interest rates from 2013 to 2021 (ranging from 0.08% to 1.83%), homeownership rates remained relatively stable, only increasing slightly from 85% to 88%. This suggests that other local factors may have a stronger influence on homeownership in this area than national interest rate trends.
Renter percentages in Prospect have shown a slight decline, moving from 15% in 2013 to 12% in 2022. Interestingly, average rent prices have fluctuated during this period. In 2013, the average rent was $977, which decreased to $825 in 2015, then rose to $1,074 in 2016, before settling at $893 in 2022. These fluctuations in rent prices do not show a clear correlation with the declining renter percentage, suggesting that local economic factors or housing supply might be influencing rental trends more than demand from renters.
Looking at the most recent data, the average home price in Prospect reached $284,043 in 2023, showing continued growth from previous years. However, in 2024, there was a slight decrease to $282,495. This minor dip coincides with a significant increase in federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024. These higher interest rates may be starting to impact home buying affordability and, consequently, home prices in the area.
Applying predictive models to forecast 5-year trends, we can expect average home prices in Prospect to continue their overall upward trajectory, albeit at a potentially slower rate due to higher interest rates. The average home price could reach around $300,000 to $310,000 by 2029. Rent prices are likely to stabilize and potentially increase moderately, possibly reaching an average of $950 to $1,000 per month in the next five years, assuming economic conditions remain relatively stable.
In summary, Prospect has maintained a high rate of homeownership despite fluctuations in the housing market. The significant increase in average home prices over the past decade, coupled with relatively stable ownership rates, suggests a strong local real estate market. However, the recent rise in interest rates and the slight dip in 2024 home prices indicate that the market may be entering a period of adjustment. The rental market, while smaller, has shown resilience with fluctuating prices but a consistent demand. These trends point to a dynamic housing market in zip code 16052 that balances homeownership stability with evolving economic conditions.
