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Zip Code 16505: Rising Home Values and Ownership Trends in Erie, 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 16505, located in Erie, Pennsylvania, has shown significant shifts in homeownership rates and property values over the past decade. This area has experienced a notable increase in homeownership, coupled with rising average home prices and average rent costs.
The trend in homeownership in zip code 16505 has been steadily increasing from 2013 to 2022. In 2013, the homeownership rate was 70%, and it consistently rose to reach 77% by 2022. This 7 percentage point increase in homeownership coincided with a substantial rise in average home prices. In 2013, the average home price was $140,838, and it grew to $195,585 by 2022, representing a 38.9% increase over this period. This positive correlation suggests that as home values appreciated, more residents found it advantageous to invest in homeownership.
The relationship between federal interest rates and homeownership rates in this zip code presents an interesting dynamic. Despite fluctuations in interest rates, the homeownership rate consistently increased. For instance, when interest rates were at a low of 0.08% in 2021, the homeownership rate was 76%. As interest rates rose to 1.68% in 2022, homeownership still increased to 77%, indicating that other factors beyond interest rates were influencing homeownership decisions in this area.
Conversely, the percentage of renters in zip code 16505 has been declining. In 2013, 30% of residents were renters, which decreased to 23% by 2022. Despite this decline in the renter population, average rent prices have shown an upward trend. The average rent increased from $801 in 2013 to $940 in 2022, a 17.4% rise. This trend suggests that while fewer people are renting, those who do are facing higher costs, possibly due to increased demand for quality rental properties or overall market appreciation.
In 2023 and 2024, the housing market in zip code 16505 continued to show strong growth. The average home price reached $206,975 in 2023 and further increased to $220,134 in 2024, representing a 12.6% increase from 2022 to 2024. This growth occurred despite rising interest rates, which reached 5.02% in 2023 and 5.33% in 2024, indicating a robust local housing market resilient to higher borrowing costs.
Looking ahead, predictive models suggest that the upward trend in both average home prices and average rent prices is likely to continue over the next five years. Average home prices are projected to increase by approximately 3-5% annually, potentially reaching around $255,000 by 2029. Average rent prices are expected to follow a similar trajectory, with an estimated annual increase of 2-4%, potentially reaching $1,100 per month by 2029.
In summary, zip code 16505 has demonstrated a clear trend towards increased homeownership and rising property values. The area has shown resilience to fluctuating interest rates, with consistent growth in both homeownership rates and average home prices. While the renter population has decreased, average rent prices have continued to rise, indicating a competitive rental market. These trends, combined with the recent strong performance in 2023 and 2024, suggest a robust and growing real estate market in this Erie zip code for the foreseeable future.
