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Zip Code 16877: Rising Home Values and Stable Ownership 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
Baileyville, located in zip code 16877 in Pennsylvania, is a small community that has experienced notable changes in its housing market over the past decade. This analysis examines the trends in homeownership rates, average home prices, and average rent prices, providing insights into the local real estate dynamics.
The homeownership rate in Baileyville has remained relatively stable, with slight fluctuations between 2013 and 2022. In 2013, the homeownership rate stood at 89%, and by 2022, it had decreased slightly to 86%. During this period, average home prices in the area showed a consistent upward trend. In 2013, the average home price was $205,536, and it steadily increased to $309,903 by 2022, representing a substantial 50.8% growth over nine years. This trend suggests that despite rising home prices, residents of Baileyville have maintained a strong preference for homeownership.
The relationship between federal interest rates and homeownership rates in Baileyville follows a typical pattern. From 2013 to 2016, when interest rates were exceptionally low (ranging from 0.11% to 0.4%), the homeownership rate remained high at 87-89%. As interest rates began to rise more significantly from 2017 onwards, reaching 1.68% in 2022, there was a slight decline in homeownership to 86%. This trend aligns with the general principle that lower interest rates tend to encourage homeownership due to more affordable financing options.
Rental trends in Baileyville show some interesting patterns. The percentage of renters increased from 11% in 2013 to 14% in 2022, indicating a slight shift towards renting. Average rent prices fluctuated during this period, with notable increases and decreases. In 2013, the average rent was $1,075, which peaked at $1,231 in 2017 before declining to $1,050 in 2022. This represents a modest overall decrease of 2.3% in average rent prices from 2013 to 2022. The population growth from 1,936 in 2013 to 1,856 in 2022 may have influenced these rental market dynamics.
Looking at the most recent data, the average home price in Baileyville continued to rise, reaching $317,331 in 2023 and $322,487 in 2024. This represents a 2.4% increase from 2022 to 2023 and a further 1.6% increase from 2023 to 2024. Concurrently, federal interest rates have significantly increased to 5.02% in 2023 and 5.33% in 2024, which may impact future homebuying decisions in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in Baileyville will continue to rise, albeit at a potentially slower rate due to higher interest rates. We project that by 2029, average home prices could reach approximately $350,000 to $375,000. For average rent prices, we expect a moderate increase, potentially reaching $1,200 to $1,300 per month by 2029, assuming stable economic conditions and continued population growth.
In summary, Baileyville has maintained a high rate of homeownership despite rising home prices, demonstrating the community's strong preference for owning rather than renting. The slight increase in renters and fluctuations in rent prices suggest a dynamic rental market responding to population changes and economic factors. The recent sharp rise in interest rates may influence future homeownership trends, potentially slowing the rate of price appreciation in the coming years.
