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Zip Code 16406: Rising Home Values and Ownership Rates in Conneautville, 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 16406, located in Conneautville, Pennsylvania, is a rural area spanning 73.71 square miles. This zip code has experienced notable shifts in homeownership rates and housing prices over the past decade, reflecting broader economic trends and local market dynamics. The homeownership rate in zip code 16406 has shown a gradual increase from 81% in 2013 to 83% in 2022. This upward trend in homeownership coincides with a significant rise in average home prices. In 2012, the average home price was $104,270, which steadily climbed to $175,301 by 2022, representing a substantial 68% increase over this period. The most dramatic jump occurred between 2020 and 2021, when average home prices surged from $138,498 to $159,485, a 15.2% increase in just one year.
Federal interest rates have played a crucial role in shaping homeownership trends in zip code 16406. The period from 2012 to 2016 saw historically low interest rates, hovering around 0.1% to 0.4%. During this time, homeownership rates remained stable at 81-82%, likely influenced by the favorable borrowing conditions. As interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, homeownership rates surprisingly increased to 83%, possibly due to other local economic factors or a desire to lock in home purchases before further rate increases.
The rental market in zip code 16406 has shown interesting trends in relation to the homeownership patterns. The percentage of renters decreased slightly from 19% in 2013 to 17% in 2022. Despite this decrease, average rent prices have generally trended upward. In 2013, the average rent was $657, which increased to $738 by 2022, a 12.3% rise. However, this increase was not linear, with fluctuations seen throughout the years. For instance, average rent peaked at $741 in 2021 before slightly decreasing to $738 in 2022.
In 2023 and 2024, zip code 16406 experienced further changes in the housing market. The average home price reached $183,242 in 2023, the highest point in the available data. However, 2024 saw a decline to $168,173, marking a 8.2% decrease. This downturn coincides with a significant rise in federal interest rates, which increased to 5.02% in 2023 and further to 5.33% in 2024, potentially impacting home affordability and demand.
Looking ahead, predictive models suggest that average home prices in zip code 16406 may continue to fluctuate in the next five years. Given the recent decline and high interest rates, we might see a period of price stabilization or modest growth. Average rent prices are likely to continue their upward trajectory, albeit at a slower pace, potentially reaching around $800 by 2029.
In summary, zip code 16406 has demonstrated resilience in homeownership rates, increasing from 81% to 83% over the past decade despite rising home prices. The area has seen significant appreciation in home values, with prices rising by 68% from 2012 to 2022. The rental market, while shrinking slightly in terms of occupancy, has seen moderate increases in average rents. The recent decline in home prices in 2024, coupled with high interest rates, suggests a potential cooling of the market, which may lead to more balanced growth in both the homeownership and rental sectors in the coming years.
