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Zip Code 16428: Rising Home Values and Stable Ownership Near Lake Erie
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 16428, located in North East, Pennsylvania, presents an intriguing real estate landscape. This area has experienced notable fluctuations in homeownership rates and housing prices over the past decade. The ownership percentage has remained relatively stable, hovering around 72-75%, while average home prices have shown a consistent upward trend.
The homeownership rate in zip code 16428 has demonstrated resilience, with only minor fluctuations between 2013 and 2022. In 2013, the ownership rate stood at 75%, slightly decreasing to 72% by 2018, and then rebounding to 75% in 2022. Concurrently, average home prices have shown a steady increase. In 2013, the average home price was $139,679, rising to $160,628 by 2019, and further escalating to $211,231 in 2022. This represents a substantial 51% increase in average home prices over a nine-year period, despite relatively stable homeownership rates.
Federal interest rates have played a significant role in shaping homeownership trends in the area. The period from 2013 to 2016 saw historically low interest rates, ranging from 0.11% to 0.40%, which likely contributed to the stability in homeownership rates. As interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), we observed a slight dip in homeownership percentages. However, the dramatic drop in interest rates in 2020 (0.38%) and 2021 (0.08%) coincided with an increase in homeownership rates from 72% to 75% between 2021 and 2022.
Renter percentages in zip code 16428 have shown an inverse relationship to homeownership rates, naturally. The renter population increased from 25% in 2013 to 28% in 2015, remaining stable until 2021 when it decreased back to 25%. Interestingly, average rent prices have not followed a consistent pattern. In 2013, the average rent was $811, peaking at $866 in 2015 before declining to $732 in 2022. This represents a 15.5% decrease in average rent prices from their peak, despite a relatively stable renter population percentage.
The years 2023 and 2024 have brought significant changes to the housing market in zip code 16428. Average home prices continued their upward trajectory, reaching $222,708 in 2023 and further increasing to $229,834 in 2024. This represents a 5.3% increase from 2022 to 2023 and an additional 3.2% rise from 2023 to 2024. Concurrently, federal interest rates have dramatically increased, reaching 5.02% in 2023 and 5.33% in 2024, levels not seen since before the 2008 financial crisis.
Looking ahead, predictive models suggest that average home prices in zip code 16428 are likely to continue their upward trend, albeit at a potentially slower rate due to higher interest rates. We can expect average home prices to reach approximately $250,000 by 2029. Average rent prices, which have been more volatile, may stabilize and potentially increase moderately, potentially reaching around $800 by 2029, assuming economic conditions remain stable and housing demand in the area persists.
In summary, zip code 16428 has demonstrated a resilient housing market with stable homeownership rates despite significant increases in average home prices. The inverse relationship between federal interest rates and homeownership rates has been evident, particularly in recent years. The rental market has shown more volatility in pricing, with recent trends indicating a potential stabilization. As we move forward, the area is poised for continued growth in home values, with the rental market likely to follow suit, albeit at a more moderate pace.
