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Zip Code 17321: Rising Home Values and Strong Ownership in Fawn Grove, PA
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 17321, located in Fawn Grove, Pennsylvania, presents an interesting case study of homeownership and housing market dynamics in a small town setting. Over the past decade, this area has maintained a consistently high rate of homeownership while experiencing notable fluctuations in average home prices and rent costs.
The homeownership rate in zip code 17321 has remained relatively stable, hovering around 80-87% between 2013 and 2022. This high rate of owner-occupied housing indicates a strong preference for homeownership in the community. Concurrently, average home prices have shown a steady upward trend. In 2013, the average home price was $214,380, which increased to $341,594 by 2022, representing a significant 59.3% growth over this period. This price appreciation suggests a robust demand for housing in the area, potentially driven by the area's desirability and limited housing supply.
The relationship between federal interest rates and homeownership rates in zip code 17321 appears to follow the general trend of lower interest rates encouraging homeownership. For instance, when interest rates were at historic lows between 2020 and 2021 (0.38% and 0.08% respectively), homeownership rates in the area reached their peak at 87% in 2020 and 85% in 2021. This correlation supports the notion that lower interest rates make mortgages more affordable, potentially encouraging more residents to purchase homes.
Renter percentages in zip code 17321 have fluctuated between 13% and 20% from 2013 to 2022, inversely mirroring the homeownership trends. Average rent prices have shown an overall increasing trend, albeit with some volatility. In 2013, the average rent was $958, which rose to $1,051 by 2022, an increase of 9.7%. Notably, there was a significant jump in average rent from $1,051 in 2020 to $1,134 in 2021, a 7.9% increase in a single year. This spike could be attributed to various factors, including increased demand for rental properties or a shortage of available units.
Looking at the most recent data, the average home price in zip code 17321 reached $361,162 in 2023 and further increased to $374,751 in 2024. This represents a 5.7% year-over-year increase from 2022 to 2023, and a 3.8% increase from 2023 to 2024. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, marking a substantial increase from the near-zero rates of the early 2020s.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 17321 will continue to rise, albeit at a potentially slower rate due to higher interest rates. Assuming a conservative annual growth rate of 3-4%, average home prices could reach approximately $435,000 to $455,000 by 2029. For rent prices, if the current trend continues, we might see average rents increase to around $1,300 to $1,400 per month in the next five years, factoring in historical growth rates and potential market adjustments.
In summary, zip code 17321 demonstrates a strong preference for homeownership, with consistently high owner-occupancy rates despite rising home prices. The area has experienced significant home value appreciation over the past decade, potentially making it an attractive market for homeowners and investors. While rent prices have also increased, they have done so at a slower pace than home values. The recent sharp rise in interest rates may impact future homeownership trends and price appreciation, potentially slowing the rate of increase in both home prices and rents in the coming years.
