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Zip Code 16342: Steady Homeownership and Rising Home Values in Polk, 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 16342, located in Polk, Pennsylvania, presents an interesting case study of homeownership and housing market trends. This area has maintained a consistently high rate of homeownership over the past decade, with average home prices showing a steady increase. The rental market, while smaller, has also experienced notable changes in both occupancy rates and average rent prices.
The homeownership rate in zip code 16342 has remained relatively stable, fluctuating between 83% and 86% from 2013 to 2022. During this period, average home prices have shown a consistent upward trend. In 2013, the average home price was $92,707, which increased to $144,033 by 2022, representing a substantial 55.4% growth over nine years. Notably, the most significant jump occurred between 2020 and 2021, when average home prices surged from $112,727 to $133,192, a 18.2% increase in a single year.
Federal interest rates have played a role in shaping homeownership trends in this area. The period from 2013 to 2016 saw historically low interest rates, ranging from 0.09% to 0.40%, which likely contributed to the stable homeownership rates during this time. As interest rates began to rise from 2017 onwards, reaching 2.16% in 2019, the homeownership rate remained resilient, only dropping slightly from 85% in 2015 to 83% in 2019. This suggests that other factors, such as local economic conditions or housing supply, may have a strong influence on homeownership in this zip code.
The rental market in zip code 16342, while smaller, has shown some fluctuations. The percentage of renters varied between 14% and 17% from 2013 to 2022. Average rent prices have been relatively volatile during this period. In 2013, the average rent was $678, which decreased to $641 by 2020, before rising sharply to $721 in 2021. Interestingly, in 2022, the average rent dropped again to $643. These fluctuations in rent prices don't seem to correlate strongly with the changes in renter occupancy rates, suggesting that local factors beyond supply and demand may be influencing the rental market.
Looking at the most recent data, the average home price in zip code 16342 continued to rise, reaching $145,508 in 2023 and $148,290 in 2024. This represents a modest but steady increase of 1% and 1.9% respectively. Simultaneously, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024. Despite these higher interest rates, which typically make mortgages more expensive, the local housing market appears to be maintaining its upward trajectory in terms of average home prices.
Applying predictive models to forecast 5-year trends, we can expect the average home prices in zip code 16342 to continue their upward trajectory, albeit at a potentially slower pace due to higher interest rates. By 2029, average home prices could potentially reach the $160,000 to $170,000 range. For rent prices, the forecast is less certain due to the recent volatility. However, if the trend stabilizes, we might see average rents in the $700 to $750 range by 2029.
In summary, zip code 16342 demonstrates a strong preference for homeownership, with consistently high rates despite fluctuations in the broader economic environment. The housing market has shown remarkable resilience, with steady price appreciation even in the face of rising interest rates. The rental market, while smaller, shows more volatility in both occupancy rates and prices. These trends suggest a stable and potentially growing housing market in this area for the foreseeable future.
