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Zip Code 17325: Rising Home Values and Strong Ownership in Lake Heritage, 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 17325, located in Lake Heritage, Pennsylvania, has experienced notable shifts in homeownership rates and housing prices over the past decade. This area has seen a gradual increase in owner-occupied housing, coupled with significant growth in average home values and rent prices.
The homeownership rate in zip code 17325 has shown a steady upward trend, rising from 70% in 2013 to 73% in 2022. This increase in homeownership coincides with a substantial rise in average home prices. In 2013, the average home price was $212,380, which grew to $309,486 by 2022, representing a 45.7% increase over nine years. This trend suggests a strong correlation between rising home values and increasing homeownership rates in the area.
Federal interest rates have played a significant role in shaping homeownership trends. From 2013 to 2020, interest rates remained relatively low, ranging from 0.09% to 2.16%. This period of low interest rates coincided with the increase in homeownership rates from 70% to 72%. The low-interest environment likely made mortgages more affordable, encouraging more residents to purchase homes. However, the sharp increase in interest rates to 1.68% in 2022 and 5.02% in 2023 may explain the slight moderation in homeownership growth rate in recent years.
Renter percentages in zip code 17325 have inversely mirrored the homeownership trends, decreasing from 30% in 2013 to 27% in 2022. Despite this decline, average rent prices have shown an overall upward trajectory. The average rent increased from $956 in 2013 to $988 in 2022, with some fluctuations in between. Notably, there was a significant spike in 2021 when the average rent reached $1,031, before slightly decreasing in 2022. The population growth from 26,874 in 2013 to 27,976 in 2022 may have contributed to the overall increase in rent prices despite the decreasing percentage of renters.
In 2023 and 2024, the housing market in zip code 17325 continued its upward trajectory. The average home price reached $320,938 in 2023 and further increased to $331,226 in 2024. This represents a 3.7% year-over-year increase from 2023 to 2024. Concurrently, federal interest rates rose to 5.02% in 2023 and 5.33% in 2024, potentially impacting homebuying decisions in the area.
Looking ahead, based on historical trends and current market conditions, we can anticipate continued growth in both average home prices and rent prices over the next five years. Average home prices are projected to increase by approximately 3-4% annually, potentially reaching around $390,000 by 2029. Average rent prices are expected to grow at a more moderate pace of 1-2% per year, potentially reaching about $1,050 by 2029.
In summary, zip code 17325 has demonstrated a clear trend of increasing homeownership rates and rising property values over the past decade. The area has shown resilience in its housing market, with consistent growth in average home prices even in the face of rising interest rates. While the rental market has seen some fluctuations, it has generally trended upwards in terms of prices. These trends, combined with steady population growth, suggest a robust and dynamic housing market in this Pennsylvania community.
