Conversely, the renter percentage in zip code 16623 has decreased over time, dropping from 12% in 2013 to 12% in 2022. Despite this decline, average rent prices have shown an upward trend. The average rent increased from $657 in 2013 to $784 in 2022, representing a 19.3% increase over nine years. This rise in rent prices, coupled with the decreasing renter population, suggests a tightening rental market, possibly due to a limited supply of rental properties in the area.

Looking at the most recent data, the average home price in zip code 16623 rose to $191,614 in 2023, showing a slight increase from the previous year. However, in 2024, there was a minor decrease to $190,419. This slight dip in average home prices occurred alongside a significant increase in federal interest rates, which rose to 5.02% in 2023 and further to 5.33% in 2024. These higher interest rates may have contributed to the slight cooling in the housing market.

Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 16623 will continue to show moderate growth, albeit at a slower pace due to higher interest rates. We expect average home prices to reach approximately $200,000 by 2029. Average rent prices are also predicted to continue their upward trajectory, potentially reaching around $850 per month in the next five years, reflecting the ongoing demand for rental properties in the area.

In summary, zip code 16623 has experienced a significant shift towards homeownership over the past decade, with rising average home prices and increasing average rents. The interplay between low interest rates and growing homeownership rates has been evident, while the rental market has seen price increases despite a declining renter population. As interest rates have risen in recent years, we anticipate a more moderate growth in both home prices and rents, with homeownership remaining the dominant housing choice in this small Pennsylvania community.