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Zip Code 16053: Oak Hills's Homeownership and Average Home Values Amidst Market Fluctuations
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
Oak Hills, located in zip code 16053 in Pennsylvania, is a community that has experienced notable shifts in homeownership rates and housing prices over the past decade. The area has maintained a predominantly owner-occupied housing market, with average home prices showing an upward trend and average rent prices fluctuating over time.
The homeownership rate in Oak Hills has remained relatively stable, hovering around 83-85% between 2013 and 2022. However, there was a slight decrease from 85% in 2020 to 82% in 2022. This minor decline coincided with a significant increase in average home prices. From 2016 to 2022, average home prices rose steadily from $248,102 to $329,177, representing a substantial 32.7% increase over six years. This trend suggests that while homeownership remained high, rising home prices may have made it slightly more challenging for some residents to enter the housing market.
The relationship between federal interest rates and homeownership rates in Oak Hills appears to follow the general trend of lower interest rates encouraging homeownership. For instance, from 2016 to 2020, when interest rates were relatively low (ranging from 0.4% to 2.16%), homeownership rates remained stable or even increased slightly from 83% to 85%. However, as interest rates began to rise more sharply in 2022 (1.68%), we see a slight dip in homeownership to 82%, potentially reflecting the increased cost of financing home purchases.
Renter percentages in Oak Hills have fluctuated between 15% and 18% from 2013 to 2022. Interestingly, average rent prices have shown a general upward trend during this period. In 2013, the average rent was $882, which increased to $964 by 2022, representing a 9.3% rise. However, there was a notable spike in 2021 when the average rent jumped to $1,159, before decreasing again in 2022. This spike coincided with a slight increase in the renter population from 15% in 2020 to 16% in 2021, possibly indicating a temporary shift in housing preferences or availability.
Looking at the most recent data, average home prices in Oak Hills reached $320,969 in 2023 and $311,418 in 2024, showing a slight decline of 3% over this period. This downturn coincides with a significant increase in interest rates, which rose to 5.02% in 2023 and 5.33% in 2024. These higher interest rates may be contributing to a cooling effect on the housing market, potentially making homeownership less affordable for some buyers.
Based on the observed trends and current market conditions, we can forecast potential 5-year trends for average home and rent prices in Oak Hills. Average home prices may experience a period of stabilization or slight decline in the short term due to high interest rates. However, if interest rates decrease in the future, we could see a resumption of the upward trend in home prices, potentially reaching around $340,000-$350,000 by 2029. Average rent prices are likely to continue their gradual upward trajectory, possibly reaching $1,050-$1,100 per month by 2029, barring any significant economic shifts or changes in local housing policies.
In summary, Oak Hills has maintained a strong homeownership market despite rising home prices. The community has experienced a steady increase in both average home prices and rent prices over the past decade, with some fluctuations. Recent increases in interest rates may be influencing a slight cooling in the housing market, but the area's high homeownership rate suggests a continued preference for owner-occupied housing among residents.
