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Zip Code 16691: High Homeownership and Modest Home Value Growth in Rural 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 16691, located in Valley-Hi, Pennsylvania, presents an intriguing case study of homeownership and rental trends in a small, rural community. This area has maintained consistently high homeownership rates, hovering around 87-89% throughout the analyzed period. Average home prices have shown a modest upward trajectory in recent years, while average rent prices have experienced more significant fluctuations.
The homeownership rate in zip code 16691 has remained remarkably stable, with only minor variations between 87% and 90% from 2013 to 2022. This high rate of homeownership has persisted despite changes in average home prices. In 2022, the average home price in the area was $159,727, indicating a relatively affordable housing market compared to many urban areas. The stability in homeownership rates suggests a strong community preference for owning rather than renting, possibly due to the rural nature of the area and the availability of affordable housing options.
Federal interest rates have played a role in maintaining high homeownership rates in this zip code. The period from 2013 to 2021 saw historically low interest rates, ranging from 0.08% to 1.83%. These low rates likely contributed to the sustained high levels of homeownership by making mortgages more affordable for residents. Even as interest rates began to rise in 2022 to 1.68%, the homeownership rate remained steady at 87%, demonstrating the area's resilience to moderate interest rate increases.
Renter percentages in zip code 16691 have consistently remained low, fluctuating between 10% and 12% from 2013 to 2022. Despite this low percentage, average rent prices have shown a significant increase over time. In 2013, the average rent was $525, which rose to $864 by 2018, representing a 64.6% increase in just five years. However, there was a notable decrease in average rent to $700 in 2020, possibly influenced by the economic impacts of the COVID-19 pandemic. By 2022, the average rent had rebounded slightly to $755. These rent price fluctuations occurred against a backdrop of declining population, which dropped from 497 in 2010 to 334 in 2022, potentially affecting the rental market dynamics.
In 2023 and 2024, average home prices in zip code 16691 continued their upward trend. The average home price rose to $163,569 in 2023 and further increased to $164,741 in 2024. This represents a modest but steady appreciation in home values. Concurrently, federal interest rates climbed significantly, reaching 5.02% in 2023 and 5.33% in 2024, marking a substantial increase from the previous years' low rates.
Looking ahead to the next five years, based on current trends, we can expect average home prices in zip code 16691 to continue their gradual increase. Projecting the recent growth rate, average home prices could potentially reach around $175,000 by 2029. Average rent prices, which have shown more volatility, may stabilize and see moderate increases, potentially reaching approximately $800-$850 per month by 2029, assuming economic conditions remain stable and the local population doesn't experience dramatic changes.
In summary, zip code 16691 demonstrates a strong preference for homeownership, with consistently high rates despite fluctuations in home prices and interest rates. The area has experienced modest growth in average home values and more volatile changes in average rent prices. The community's resilience in maintaining high homeownership rates, even in the face of rising interest rates and changing economic conditions, is a defining characteristic of this rural Pennsylvania zip code.
