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Zip Code 16858: High Homeownership and Evolving Home Values 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 16858, located in Morrisdale, Pennsylvania, has experienced notable shifts in homeownership rates and housing prices over the past decade. This area has maintained a consistently high rate of owner-occupied housing, with a slight increase in recent years, while average home prices have shown significant growth.
The homeownership rate in zip code 16858 has remained relatively stable, with a slight upward trend. In 2013, the owner-occupied rate was 88%, and by 2022, it had increased to 90%. This 2% increase in homeownership coincided with a substantial rise in average home prices. From 2016 to 2022, average home prices in the area grew from $105,111 to $151,948, representing a 44.6% increase over six years.
The relationship between federal interest rates and homeownership rates in this zip code shows an interesting pattern. Despite fluctuations in interest rates, the area maintained a high homeownership rate. For instance, when interest rates were at 0.08% in 2021, the homeownership rate was 89%. In 2022, with interest rates rising to 1.68%, the homeownership rate actually increased to 90%. This suggests that other local factors may have a stronger influence on homeownership in this area than national interest rates.
Renter percentages in zip code 16858 have remained relatively low, showing a slight decrease from 12% in 2013 to 10% in 2022. During this period, average rent prices experienced some fluctuations. In 2013, the average rent was $735, which increased to $876 by 2015. However, by 2022, average rent had decreased slightly to $822. This decrease in rent prices, coupled with the slight decrease in renter percentages, may indicate a shift towards homeownership in the area.
In 2023, the average home price in zip code 16858 increased slightly to $152,216, with interest rates rising to 5.02%. Moving into 2024, we see a decrease in average home prices to $142,696, while interest rates have further increased to 5.33%. This recent trend suggests a potential cooling in the local housing market, possibly influenced by the higher interest rates.
Looking ahead, based on the historical data and recent trends, we can project some potential scenarios for the next five years. Average home prices may experience a period of stabilization or slight decline in the short term, influenced by higher interest rates. However, given the area's consistent homeownership rates and previous growth patterns, prices could potentially rebound and show moderate growth in the latter part of the five-year period. Rent prices may remain relatively stable or see modest increases, especially if the trend towards homeownership continues.
In summary, zip code 16858 has demonstrated a strong preference for homeownership, with rates reaching 90% in recent years. The area has seen significant growth in average home prices since 2016, although recent data suggests a potential market adjustment. The resilience of homeownership rates despite interest rate fluctuations indicates that local factors play a crucial role in this market. The coming years may bring a period of stabilization in both home prices and rent, with the potential for renewed growth as the market adapts to changing economic conditions.
