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Zip Code 16323: Rising Home Values and Stable Ownership in Sugarcreek, Pennsylvania
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 16323, located in Sugarcreek, Pennsylvania, has experienced notable shifts in its housing market dynamics over the past decade. This area, covering 100.85 square miles, has seen fluctuations in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market conditions.
The homeownership rate in zip code 16323 has shown some variability, with a general trend towards slight decline. In 2013, the homeownership rate stood at 71%, reaching a peak of 75% in 2014 before gradually decreasing to 67% in 2020. However, it rebounded to 71% by 2022. Concurrently, average home prices have demonstrated a steady upward trajectory. From 2013 to 2022, average home prices increased from $80,160 to $125,598, representing a significant 56.7% growth over this period.
The relationship between federal interest rates and homeownership rates in this zip code shows some correlation. For instance, the peak homeownership rate of 75% in 2014 coincided with a period of historically low interest rates (0.09%). As interest rates began to rise from 2016 onwards, there was a general downward trend in homeownership rates, reaching a low of 67% in 2020 when interest rates dropped again to 0.38%. This pattern suggests that while lower interest rates can encourage homeownership, other local factors also play a significant role in this market.
Renter percentages in zip code 16323 have shown an inverse relationship to homeownership rates, naturally increasing as homeownership decreased. The renter-occupied percentage rose from 28% in 2013 to a peak of 33% in 2020, before settling at 29% in 2022. Average rent prices have fluctuated over this period, starting at $674 in 2013, dropping to a low of $620 in 2020, and then rising to $626 in 2022. Interestingly, the highest average rent of $698 was recorded in 2021, coinciding with a slight increase in homeownership rates, possibly indicating a temporary tightening of the rental market.
In 2023 and 2024, the housing market in zip code 16323 has shown signs of stabilization. The average home price in 2023 was $124,977, a slight decrease from 2022, but it rebounded to $126,132 in 2024. This occurs against a backdrop of significantly higher interest rates, with 2023 seeing rates at 5.02% and 2024 at 5.33%. Despite these high rates, the housing market appears to be maintaining its value, suggesting strong underlying demand or limited supply in the area.
Looking ahead, predictive models suggest that average home prices in zip code 16323 may continue to rise moderately over the next five years, potentially reaching around $135,000 by 2029. Average rent prices are also expected to increase, possibly surpassing $700 per month within the same timeframe. These projections are based on historical trends and assume relatively stable economic conditions.
In summary, zip code 16323 has experienced a gradual increase in average home prices despite fluctuations in homeownership rates. The rental market has shown resilience, with renter percentages and average rents generally moving inversely to homeownership trends. The area's housing market has demonstrated stability in the face of recent interest rate hikes, suggesting a robust local real estate environment. As the market continues to evolve, both homeowners and renters in this Pennsylvania borough may see modest increases in their housing costs over the coming years.
