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Zip Code 17033: Hershey's Sweet Housing Market - Average Home Values and Ownership Trends in Chocolate Town
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
Hershey, located in zip code 17033 in Pennsylvania, is renowned for its chocolate industry and offers a unique blend of suburban living with a touch of sweetness. Over the past decade, this area has experienced notable fluctuations in homeownership rates, average home prices, and average rent prices, reflecting the dynamic nature of its real estate market. The homeownership rate in Hershey has remained relatively stable, hovering around 58-60% between 2013 and 2022. However, there have been slight variations, with the rate dropping to its lowest point of 56% in 2021 before rebounding to 58% in 2022. Interestingly, these changes in homeownership rates have coincided with significant increases in average home prices. From 2013 to 2022, average home prices in the area rose substantially, from $207,851 to $347,889, representing a 67.4% increase over this period.
The relationship between federal interest rates and homeownership rates in Hershey presents an intriguing pattern. Despite historically low interest rates between 2013 and 2021 (ranging from 0.08% to 1.83%), homeownership rates remained relatively stable, only fluctuating within a narrow range. This suggests that other factors, such as local economic conditions or housing supply, may have played a more significant role in influencing homeownership decisions in this area.
Renter percentages in Hershey have shown a slight upward trend, increasing from 41% in 2013 to 42% in 2022, with a peak of 44% in 2021. This trend has been accompanied by fluctuations in average rent prices. Average rents rose from $1,136 in 2013 to a peak of $1,233 in 2015, before experiencing some volatility and settling at $1,097 in 2022. The population growth from 15,810 in 2013 to 16,504 in 2022 may have contributed to the overall increase in rental demand, despite the slight variations in rent prices.
In 2023 and 2024, Hershey has seen a continuation of rising average home prices, reaching $370,283 in 2023 and $382,924 in 2024. This represents a 10.1% increase from 2022 to 2024. Concurrently, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024, potentially impacting homebuying decisions in the area.
Looking ahead, predictive models suggest that average home prices in Hershey may continue to rise over the next five years, albeit at a potentially slower rate due to higher interest rates. Average rent prices are also expected to increase moderately, driven by population growth and the area's desirability. However, the rate of increase may be tempered by new housing developments and economic factors.
In summary, Hershey has demonstrated resilience in its housing market, with steadily increasing average home prices despite fluctuations in homeownership rates. The rental market has shown stability with a slight upward trend in renter percentages. The recent sharp rise in interest rates, coupled with continued growth in home prices, may lead to a more balanced market in the coming years, potentially affecting both homeownership rates and rental demand in this chocolate-themed community.
