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Zip Code 16229: Rising Home Values and Stable Ownership in Freeport, 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 16229, located in Freeport, Pennsylvania, presents an interesting case study in real estate trends. This area, spanning 30.34 square miles, has experienced fluctuations in homeownership rates and housing prices over the past decade. The overall trend shows a slight decrease in homeownership, coupled with a significant increase in average home prices and moderate growth in average rent prices.
The homeownership rate in zip code 16229 has seen minor fluctuations between 2013 and 2022. In 2013, the homeownership rate stood at 78%, gradually decreasing to 74% by 2022. This slight decline coincided with a substantial increase in average home prices. In 2013, the average home price was $122,074, which rose steadily to reach $190,487 by 2022, representing a 56% increase over this period. This inverse relationship suggests that rising home prices may have made homeownership less accessible for some residents.
Federal interest rates have played a significant role in shaping homeownership trends. From 2013 to 2016, interest rates remained extremely low, ranging from 0.09% to 0.40%. During this period, homeownership rates in the zip code remained relatively stable at around 74-76%. As interest rates began to rise more notably from 2017 (1%) to 2019 (2.16%), we observed a slight increase in homeownership to 76% in 2017, followed by a return to 74% in subsequent years. This pattern suggests that while low interest rates generally support homeownership, other local factors also influence this trend in zip code 16229.
The renter population in the area has shown a slight increase, mirroring the decrease in homeownership. The percentage of renters rose from 22% in 2013 to 26% in 2022. Interestingly, average rent prices have not shown a consistent upward trend during this period. In 2013, the average rent was $830, which fluctuated over the years, reaching $820 in 2022. The highest average rent was recorded in 2017 at $875. These fluctuations in rent prices, coupled with the increasing home prices, may have contributed to the slight shift towards renting in the area.
Looking at the most recent data, the average home price in zip code 16229 continued its upward trajectory, reaching $195,374 in 2023 and further increasing to $201,855 in 2024. This represents a 5.9% increase from 2022 to 2024. Concurrently, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates could potentially impact future homeownership rates and housing market dynamics in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 16229 will continue to rise, albeit at a potentially slower rate due to the higher interest rate environment. By 2029, average home prices could reach approximately $230,000 to $240,000, assuming a moderate annual growth rate of 2-3%. Average rent prices are expected to show modest growth, potentially reaching around $900-$950 by 2029, reflecting a gradual increase in line with inflation and housing demand.
In summary, zip code 16229 has experienced a slight shift from homeownership to renting over the past decade, accompanied by significant increases in average home prices. The area has shown resilience in maintaining relatively stable homeownership rates despite rising home prices. The recent surge in interest rates and continued growth in home prices suggest that the local real estate market may face new challenges and opportunities in the coming years, potentially affecting the balance between homeownership and renting in this Pennsylvania community.
