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Zip Code 16402: Rising Home Values and Ownership in Rural 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 16402, situated in Bear Lake, Pennsylvania, presents a unique blend of rural characteristics and changing demographics. This area has witnessed significant shifts in homeownership rates and housing prices over the past ten years, with a general trend towards increased owner-occupancy and fluctuating average home and rent prices.
The homeownership rate in zip code 16402 has displayed a notable upward trend from 2013 to 2022. Starting at 84% in 2013, the owner-occupied rate steadily climbed to reach 90% by 2022. This considerable increase in homeownership coincided with changes in average home prices. While detailed home price data for earlier years is limited, it is observed that the average home price in 2021 was $131,207, rising to $143,253 in 2022, marking a substantial 9.2% increase within a single year.
Federal interest rates have played a significant role in shaping homeownership trends in the area. The period from 2013 to 2020 was characterized by historically low interest rates, ranging from 0.08% to 2.16%. These low rates likely contributed to the rising homeownership rates observed during this time, as they made mortgages more accessible for potential buyers. The sharp increase in interest rates to 5.02% in 2023 and 5.33% in 2024 may influence future homeownership trends in the area.
In contrast, the percentage of renters in zip code 16402 has decreased over time, falling from 16% in 2013 to 10% in 2022. This decline in renters corresponds with fluctuations in average rent prices. The average rent reached its peak at $765 in 2018 before experiencing a dramatic decrease to $455 in 2019. Since then, average rent has shown a modest increase, reaching $470 in 2022. The population of the area has also decreased from 892 in 2013 to 739 in 2022, which may have influenced the dynamics of the rental market.
Examining the most recent data, the average home price in zip code 16402 was $141,971 in 2023, showing a slight decrease from 2022. However, in 2024, the average home price has risen to $155,306, representing a significant 9.4% increase from the previous year. This increase occurs despite the higher interest rates of 5.33% in 2024, indicating strong demand in the local housing market.
Applying predictive models to forecast 5-year trends, it is anticipated that average home prices in zip code 16402 will continue to rise, albeit at a potentially slower rate due to higher interest rates. The average home price could reach approximately $180,000 by 2029. For rent prices, the trend suggests a gradual increase, potentially reaching an average of $525 per month by 2029, assuming stable economic conditions and continued population trends.
In summary, zip code 16402 has experienced a significant shift towards homeownership over the past decade, with owner-occupancy rates rising from 84% to 90%. This trend has occurred alongside fluctuating home prices and rent rates. The recent spike in home prices, despite higher interest rates, indicates a robust local housing market. As the area continues to evolve, it will be crucial to monitor how these trends impact the community's demographics and overall housing landscape.
