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Zip Code 16417: Rising Home Values and Declining Ownership in Platea, 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 16417, located in Platea, Pennsylvania, has experienced significant changes in its housing market over the past decade. The area has seen a notable increase in average home values alongside a gradual shift in homeownership rates, reflecting broader economic changes and local market dynamics.
The homeownership rate in zip code 16417 has shown a gradual decline from 2013 to 2022. In 2013, the area had an 82% homeownership rate, which decreased to 74% by 2022. This trend coincides with a substantial increase in average home prices. The average home price in 2013 was $129,294, rising steadily to reach $189,666 by 2022, representing a 46.7% increase over this period. The most significant year-over-year growth occurred between 2020 and 2021, with average home prices increasing from $155,378 to $173,549, an 11.7% jump in a single year.
Federal interest rates have influenced homeownership trends in zip code 16417. From 2013 to 2016, historically low interest rates of around 0.1% to 0.4% corresponded with relatively stable homeownership rates between 82% and 76%. As interest rates began to rise more significantly from 2017 onwards, reaching 1.83% in 2018 and 2.16% in 2019, homeownership rates showed a slight decline, dropping to 73% in 2018 before rebounding to 76% in 2019.
The rental market in zip code 16417 has shown an inverse relationship to homeownership trends. As homeownership rates declined, the percentage of renters increased from 18% in 2013 to 25% in 2022. Average rent prices have fluctuated over this period, with notable increases in recent years. In 2013, the average rent was $661, which rose to $883 by 2021, a 33.6% increase. However, there was a significant drop in 2022, with average rent decreasing to $681, a 22.9% reduction from the previous year.
Recent data shows that average home prices in zip code 16417 continued to rise in 2023 and 2024, reaching $200,117 and $209,177 respectively. This represents a 5.5% increase from 2022 to 2023 and a further 4.5% increase from 2023 to 2024. Concurrently, federal interest rates have risen substantially, reaching 5.02% in 2023 and 5.33% in 2024, which may impact future homeownership rates and housing market dynamics.
Predictive models forecasting 5-year trends anticipate continued growth in average home prices, albeit at a potentially slower rate due to higher interest rates. Average home prices could reach approximately $240,000 by 2029. For rent prices, the model suggests a potential stabilization or moderate increase, with average rents potentially reaching around $950 by 2029, assuming economic conditions remain relatively stable.
In summary, zip code 16417 has experienced a gradual shift towards renting, with homeownership rates declining as average home prices have increased significantly. The rental market has seen growth in both the percentage of renters and average rent prices, with some recent volatility. The interplay between federal interest rates, housing prices, and homeownership rates highlights the complex dynamics at play in this local real estate market. As we move forward, the area is likely to continue seeing changes in its housing landscape, influenced by broader economic factors and local market conditions.
