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Zip Code 17264: Three Springs's Rising Home Values and High Ownership Rates
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 17264, encompassing Three Springs in Pennsylvania, exhibits interesting trends in homeownership and housing market dynamics. This rural area has experienced significant changes in its real estate landscape over the past decade, with a general trend towards increased homeownership and rising average home prices, while average rent prices have shown more modest growth.
From 2013 to 2022, the area saw a significant increase in homeownership rates, rising from 82% to 86%. This upward trend coincided with a substantial appreciation in average home prices, which grew from $103,772 in 2013 to $162,844 in 2022, representing a 56.9% increase over nine years. This correlation suggests that as home values increased, more residents were motivated to invest in property ownership, possibly viewing it as a sound financial decision.
The relationship between federal interest rates and homeownership rates in this zip code is noteworthy. Despite fluctuations in interest rates, homeownership consistently increased. For instance, when interest rates were at historic lows of 0.08% in 2021, homeownership reached 84%. As rates rose to 1.68% in 2022, homeownership further increased to 86%. This trend contradicts the typical expectation that lower interest rates lead to higher homeownership, indicating that other local factors may have had a stronger influence on housing decisions in this area.
Renter percentages in zip code 17264 decreased from 18% in 2013 to 14% in 2022, inversely mirroring the rise in homeownership. During this period, average rent prices showed moderate growth, increasing from $580 in 2013 to $693 in 2022, a 19.5% rise. This slower growth in rent prices compared to home values may have contributed to the shift towards homeownership, as the relative affordability of renting diminished.
In 2023 and 2024, the average home prices in zip code 17264 continued to rise, reaching $167,751 and $168,183 respectively. This represents a slight deceleration in price growth compared to previous years, possibly influenced by the sharp increase in federal interest rates to 5.02% in 2023 and 5.33% in 2024. These higher rates may be tempering home price appreciation and could impact future homeownership trends.
Looking ahead, predictive models suggest that average home prices in zip code 17264 may continue to increase over the next five years, but at a more moderate pace. Prices are expected to potentially reach around $180,000 by 2029. Average rent prices are also projected to rise, potentially reaching $750-$800 per month in the same timeframe. These projections assume a continuation of current economic conditions and local market factors.
In summary, zip code 17264 has demonstrated a strong trend towards homeownership, with significant growth in average home prices outpacing increases in average rent. The area's resilience in maintaining high homeownership rates despite rising interest rates suggests a robust local housing market. As we move forward, the interplay between interest rates, home prices, and local economic factors will continue to shape the real estate landscape in this Pennsylvania borough.
