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Zip Code 17244: Rising Home Values and Ownership in Orrstown, 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 17244, encompassing Orrstown in Pennsylvania, presents an intriguing case study of homeownership and real estate trends in a small, rural community. Over the past decade, this area has seen significant shifts in both homeownership rates and property values, reflecting broader economic and demographic changes.
The homeownership rate in zip code 17244 has shown a notable increase from 79% in 2016 to 87% in 2022, indicating a strong preference for owning rather than renting among residents. This trend coincides with a substantial rise in average home prices, which grew from $155,237 in 2016 to $254,296 in 2022, representing a 63.8% increase over six years. The correlation between rising homeownership rates and increasing home values suggests a growing demand for property ownership in the area, possibly driven by favorable economic conditions or changes in local demographics.
Federal interest rates have played a significant role in shaping homeownership trends in zip code 17244. The period from 2016 to 2020 saw relatively low interest rates, ranging from 0.4% to 2.16%, which likely contributed to the increase in homeownership from 79% to 85% during this time. Lower interest rates typically make mortgages more affordable, encouraging more people to purchase homes. The sharp rise in interest rates to 5.02% in 2023 and 5.33% in 2024 may impact future homeownership rates, potentially slowing the growth trend observed in recent years.
While homeownership has been on the rise, the renter population in zip code 17244 has decreased correspondingly, from 21% in 2016 to 13% in 2022. Despite this decline in the renter population, average rent prices have shown a steady increase, rising from $907 in 2016 to $1,062 in 2022, a 17.1% increase. This trend suggests that even with fewer renters, demand for rental properties remains strong, possibly due to limited rental inventory or improvements in rental property quality.
Looking at the most recent data, average home prices in zip code 17244 continued to rise, reaching $266,521 in 2023 and $274,007 in 2024. This represents a 7.7% increase from 2022 to 2024, indicating sustained growth in the local real estate market despite higher interest rates. The current interest rate of 5.33% in 2024 may influence future home buying decisions and could potentially slow the rate of price appreciation.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 17244 will continue to rise, albeit at a potentially slower pace due to higher interest rates. Based on historical data and current economic conditions, we project average home prices could reach approximately $310,000 to $320,000 by 2029. Average rent prices are also expected to increase, potentially reaching $1,200 to $1,300 per month in the same timeframe, assuming current trends persist.
In summary, zip code 17244 has experienced a significant shift towards homeownership, with a corresponding increase in both home values and rent prices. The area has shown resilience in its real estate market, with continued price appreciation even in the face of rising interest rates. The strong preference for homeownership, coupled with steady population growth, suggests a robust local housing market that is likely to continue evolving in the coming years.
