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Zip Code 17004: 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 17004, located in Belleville, Pennsylvania, has experienced notable shifts in homeownership rates and housing prices over the past decade. This area, characterized by its rural setting and proximity to State College, has seen a general trend of increasing average home prices alongside fluctuating homeownership rates. The homeownership rate in zip code 17004 has shown slight variations over the years. In 2013, the area had a homeownership rate of 73%, which gradually declined to 69% by 2016. However, by 2022, the rate had stabilized at 70%. During this same period, average home prices demonstrated a consistent upward trend. In 2012, the average home price was $127,695, which steadily increased to $221,801 by 2022, representing a substantial 73.7% increase over a decade.
Federal interest rates have played a significant role in shaping homeownership trends in the area. From 2013 to 2015, when interest rates were extremely low (ranging from 0.11% to 0.13%), homeownership rates remained relatively stable around 71-73%. As interest rates began to rise from 2016 onwards, reaching 1.68% in 2022, there was a slight decrease in homeownership rates, settling at 70% in 2022. This trend aligns with the general principle that lower interest rates tend to encourage homeownership due to more affordable financing options.
Renter percentages and average rent prices in zip code 17004 have shown interesting patterns. The percentage of renters increased from 27% in 2013 to 31% in 2016, before settling back to 30% in 2022. Average rent prices, however, have not followed a consistent trend. In 2013, the average rent was $548, which decreased slightly to $505 in 2019, before rising sharply to $714 in 2022. This represents a 30.3% increase in average rent from 2013 to 2022, despite only a modest increase in the renter population.
In 2023 and 2024, the housing market in zip code 17004 continued its upward trajectory. The average home price reached $234,415 in 2023 and further increased to $238,764 in 2024. This represents a 5.7% increase from 2022 to 2023 and a further 1.9% increase from 2023 to 2024. Notably, federal interest rates also saw a significant rise, reaching 5.02% in 2023 and 5.33% in 2024, which could potentially impact future homeownership rates and housing affordability in the area.
Looking ahead, based on the historical data and current trends, we can project continued growth in both average home prices and rent prices for zip code 17004 over the next five years. Average home prices are expected to maintain their upward trajectory, potentially reaching around $270,000 by 2029. Average rent prices are also likely to continue rising, possibly exceeding $800 per month within the same timeframe. However, the rate of increase may moderate due to the higher interest rate environment.
In summary, zip code 17004 has demonstrated resilience in its housing market, with steadily increasing average home prices despite fluctuations in homeownership rates. The area has also seen a significant rise in average rent prices, particularly in recent years. The interplay between federal interest rates, homeownership rates, and housing prices continues to shape the local real estate landscape, with recent sharp increases in interest rates potentially influencing future trends in homeownership and housing affordability.
