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Zip Code 17110: Rising Home Values and Shifting Ownership Trends in Harrisburg's Capital District
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 17110, encompassing part of Harrisburg, Pennsylvania, presents a diverse urban landscape with a mix of residential and commercial areas. Over the past decade, this area has experienced fluctuations in homeownership rates and significant changes in average home and rent prices, reflecting broader economic trends and local market dynamics.
Homeownership rates in zip code 17110 have shown a gradual decline from 2013 to 2018, followed by a slight recovery. In 2013, 65% of residents were homeowners, but this figure dropped to 57% by 2018. Since then, there has been a modest rebound, with homeownership reaching 60% in 2022. This trend coincides with changes in average home prices. From 2013 to 2018, average home prices increased from $134,253 to $149,185, a relatively modest 11% growth. However, from 2018 to 2022, average home prices surged by 41%, reaching $210,927. This significant price increase may have contributed to the slight recovery in homeownership rates, as more residents may have been motivated to buy homes before prices climbed further.
The relationship between federal interest rates and homeownership rates in this zip code shows some correlation. From 2013 to 2015, when interest rates were extremely low (0.11% to 0.13%), homeownership rates declined slightly. As interest rates began to rise more significantly from 2016 to 2019 (0.4% to 2.16%), homeownership rates continued to decrease, reaching their lowest point in 2018. However, the sharp drop in interest rates in 2020 (0.38%) and 2021 (0.08%) coincided with a slight increase in homeownership rates, possibly due to more affordable financing options.
Renter percentages in zip code 17110 have generally mirrored the inverse of homeownership trends. The proportion of renters increased from 35% in 2013 to a peak of 43% in 2018, before slightly decreasing to 40% in 2022. Average rent prices have shown some volatility but with an overall upward trend. In 2013, the average rent was $1,146, which decreased to $1,087 in 2016. However, rent prices then began to climb, reaching $1,151 in 2022, a modest 0.4% increase from 2013. The population in this zip code has grown from 25,424 in 2013 to 27,152 in 2022, potentially contributing to the increased demand for rental properties and the slight upward pressure on rent prices.
In 2023 and 2024, average home prices in zip code 17110 continued their upward trajectory. The average home price reached $227,033 in 2023 and further increased to $237,676 in 2024, representing a 12.7% rise over these two years. This significant growth occurred despite federal interest rates climbing to 5.02% in 2023 and 5.33% in 2024, suggesting strong demand in the local housing market that outweighed the potential dampening effect of higher borrowing costs.
Looking ahead, based on historical trends and current market conditions, we can project that average home prices in zip code 17110 may continue to rise over the next five years, albeit potentially at a more moderate pace due to higher interest rates. Average home prices could reach approximately $275,000 to $290,000 by 2029. Average rent prices are also likely to increase, potentially reaching $1,300 to $1,400 per month in the same timeframe, driven by population growth and housing demand.
In summary, zip code 17110 has experienced a complex interplay between homeownership rates, average home prices, and rent trends. The area has seen a recovery in homeownership rates since 2018, coinciding with rapid home price appreciation. Despite rising interest rates, the housing market has shown resilience, with continued price growth in 2023 and 2024. These trends suggest a dynamic and potentially competitive housing market in this part of Harrisburg for the foreseeable future.
