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Zip Code 16701: Bradford's Home Values and Ownership Trends Amidst Rising Interest Rates
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 16701, located in Bradford, Pennsylvania, has experienced notable shifts in homeownership rates and housing prices over the past decade. This area has seen a gradual increase in owner-occupied housing, coupled with fluctuations in average home prices and rent costs.
The trend of homeownership in zip code 16701 shows a significant increase from 2013 to 2022. In 2013, the owner-occupied rate was 68%, which remained relatively stable until 2020 when it began to rise more rapidly. By 2022, the homeownership rate had climbed to 73%, representing a 5 percentage point increase over this period. Concurrently, average home prices in the area have shown a steady upward trajectory. In 2013, the average home price was $77,033, which grew to $99,140 by 2022, marking a 28.7% increase over nine years.
The relationship between federal interest rates and homeownership rates in this zip code aligns with typical patterns. As interest rates remained historically low from 2013 to 2021, ranging from 0.08% to 0.4%, homeownership rates gradually increased. This trend is consistent with the notion that lower interest rates make home financing more accessible, encouraging higher rates of homeownership.
Conversely, the percentage of renters in zip code 16701 has decreased over time, dropping from 32% in 2013 to 27% in 2022. Despite this decline in the renter population, average rent prices have shown an overall upward trend. In 2013, the average rent was $696, which increased to $728 by 2022, representing a 4.6% rise. This increase in rent prices, despite a decreasing renter population, could be attributed to various factors such as improved housing quality or broader economic conditions in the area.
In 2023 and 2024, the housing market in zip code 16701 continued its upward trajectory. The average home price reached $100,829 in 2023 and further increased to $102,409 in 2024, showing a steady appreciation in property values. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, which may impact future homeownership trends in the area.
Looking ahead, based on the observed trends, we can project that average home prices in zip code 16701 will likely continue to appreciate over the next five years, potentially reaching around $110,000 to $115,000 by 2029. Average rent prices may also continue their gradual increase, possibly reaching $750 to $775 per month in the same timeframe. However, these projections could be influenced by various factors including economic conditions, local development, and broader housing market trends.
In summary, zip code 16701 has demonstrated a clear trend towards increased homeownership and rising property values over the past decade. The area has seen a steady appreciation in average home prices, coupled with a gradual increase in average rent costs, despite a decreasing renter population. These trends, combined with the recent spike in interest rates, suggest a dynamic housing market that continues to evolve in response to various economic factors.
