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Zip Code 16875: Rising Home Values and Ownership Rates 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 16875, located in Potters Mills, Pennsylvania, presents an interesting case study of homeownership and housing market trends. This rural area has experienced significant fluctuations in population and housing dynamics over the past decade, with a general trend towards increased homeownership and rising property values.
The percentage of owner-occupied homes in zip code 16875 has shown a steady increase from 81% in 2013 to 87% in 2022. This upward trend in homeownership coincides with a substantial rise in average home prices, which grew from $202,299 in 2013 to $317,112 in 2022, representing a 56.8% increase over this period. The relationship between homeownership rates and average home prices appears to be positively correlated, suggesting that as property values increased, more residents were motivated or able to become homeowners.
Federal interest rates have played a significant role in shaping homeownership trends in the area. The period from 2013 to 2016 saw historically low interest rates, ranging from 0.09% to 0.40%, which likely contributed to the initial rise in homeownership from 81% to 83%. As interest rates began to climb from 2017 onwards, reaching 1.68% in 2022, homeownership rates continued to increase, possibly due to residents locking in purchases before further rate hikes.
The rental market in zip code 16875 has experienced inverse trends to homeownership. The percentage of renter-occupied homes decreased from 18% in 2013 to 13% in 2022. Despite this decline in the renter population, average rent prices showed volatility. They rose from $736 in 2013 to a peak of $1,041 in 2021, before slightly decreasing to $989 in 2022. This trend suggests that even with fewer renters, demand for rental properties remained strong enough to support higher rent prices, possibly due to limited rental inventory or improved quality of available rentals.
In 2023 and 2024, the housing market in zip code 16875 continued its upward trajectory. The average home price reached $329,313 in 2023 and further increased to $338,763 in 2024, representing a 6.8% growth over these two years. This occurred despite a significant rise in federal interest rates, which jumped to 5.02% in 2023 and 5.33% in 2024, highlighting the area's robust housing demand even in a higher interest rate environment.
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, albeit at a potentially slower pace due to the higher interest rate environment. Average home prices could potentially reach around $375,000 by 2029, while average rent prices might approach $1,200 per month.
In summary, zip code 16875 has demonstrated a clear shift towards increased homeownership, with a corresponding rise in property values. The area has shown resilience in its housing market, maintaining growth even as interest rates have risen significantly. The rental market, while shrinking in terms of occupancy, has seen overall increases in average rent prices. These trends point to a robust and dynamic housing market in this Pennsylvania community, with continued growth expected in both the ownership and rental sectors.
