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Zip Code 16859: Rising Home Values and Ownership Trends 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 16859, located in Moshannon, Pennsylvania, presents an intriguing case study of homeownership and housing market dynamics in a small, rural community. This area has experienced significant shifts in population and housing trends over the past decade, with a general trend towards increased homeownership and rising average home prices, despite fluctuations in average rent prices.
The ownership percentage in zip code 16859 has shown a steady increase from 86% in 2013 to 92% in 2022, indicating a strong preference for homeownership in the community. This trend coincides with a substantial rise in average home prices, which grew from $119,272 in 2013 to $188,064 in 2022, representing a 57.7% increase over nine years. The correlation between increasing homeownership rates and rising home prices suggests a robust demand for owned properties in the area, potentially driven by factors such as community stability and long-term investment potential.
Federal interest rates have played a significant role in shaping homeownership trends in zip code 16859. The period from 2013 to 2016 saw historically low interest rates, ranging from 0.09% to 0.4%, which likely contributed to the sustained high homeownership rates during this time. As interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), the homeownership rate remained stable at around 85-87%. Interestingly, despite a sharp drop in interest rates in 2020 and 2021 (0.38% and 0.08% respectively), homeownership rates continued to climb, reaching 92% by 2022, even as interest rates increased to 1.68%.
The renter percentage in zip code 16859 has correspondingly decreased from 14% in 2013 to 8% in 2022. Despite this decline, average rent prices have shown an overall upward trend, increasing from $590 in 2013 to $706 in 2022, a 19.7% rise. This trend suggests that while fewer residents are renting, those who do are facing higher costs. The population decrease from 301 in 2013 to 265 in 2022 may have contributed to the reduced rental market, potentially leading to a more competitive environment for the remaining rental properties.
In 2023 and 2024, the housing market in zip code 16859 continued its upward trajectory. The average home price reached $201,769 in 2023 and further increased to $207,504 in 2024, representing a 10.3% growth over two years. This growth occurred despite a significant rise in federal interest rates, which climbed to 5.02% in 2023 and 5.33% in 2024, potentially indicating strong local demand and resilience in the housing market.
Looking ahead, predictive models suggest that the upward trend in both average home prices and rent prices is likely to continue over the next five years. Average home prices could potentially reach around $230,000 by 2029, assuming a similar growth rate to recent years. Average rent prices may increase to approximately $800 per month in the same period, reflecting the ongoing demand for rental properties despite the smaller renter population.
In summary, zip code 16859 has demonstrated a clear trend towards increased homeownership and rising property values over the past decade. The community has shown resilience in the face of changing interest rates and population fluctuations, maintaining a strong preference for homeownership. The continued growth in both home prices and rent prices, even in the face of higher interest rates, suggests a robust and desirable local housing market that is likely to remain strong in the coming years.
