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Zip Code 17345: Rising Home Values and Stable Ownership in Manchester
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 17345, located in Manchester, Pennsylvania, has experienced notable fluctuations in its housing market over the past decade. This area has seen shifts in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market dynamics.
The homeownership rate in zip code 17345 has remained relatively stable, hovering around 75% from 2013 to 2022. However, there have been slight variations, with the lowest rate of 71% in 2019 and the highest at 76% in 2021 and 2022. Interestingly, these changes in homeownership rates have coincided with significant movements in average home prices. In 2013, the average home price was $133,039, and it steadily increased to $219,961 by 2022, representing a 65% increase over this period. This upward trend in home prices appears to have had a minimal impact on overall homeownership rates, suggesting other factors may be influencing residents' ability or desire to own homes in this area.
Federal interest rates have played a role in shaping homeownership trends in zip code 17345. From 2013 to 2016, when interest rates were historically low (ranging from 0.09% to 0.4%), homeownership rates remained relatively stable at around 73-75%. As interest rates began to rise from 2017 (1%) to 2019 (2.16%), there was a slight dip in homeownership to 71% in 2019. However, when interest rates dropped sharply in 2020 (0.38%) and 2021 (0.08%), homeownership rebounded to 75% and 76% respectively, aligning with the general trend of lower interest rates encouraging homeownership.
The renter population in zip code 17345 has shown an inverse relationship to homeownership rates, naturally. The percentage of renters fluctuated between 24% and 29% from 2013 to 2022. Interestingly, average rent prices have not consistently followed these fluctuations. In 2013, the average rent was $1,076, peaking at $1,106 in 2015 when the renter percentage was 28%. Despite a decrease in the renter population to 24% by 2022, the average rent remained relatively high at $1,001, suggesting that factors beyond simple supply and demand are influencing rent prices in this area.
In 2023 and 2024, zip code 17345 experienced a continued surge in average home prices. The average home price reached $235,331 in 2023 and further increased to $247,229 in 2024, representing a 12.4% increase from 2022 to 2024. This significant rise occurred despite the Federal interest rate climbing to 5.02% in 2023 and 5.33% in 2024, which typically would be expected to cool the housing market.
Looking ahead, predictive models suggest that average home prices in zip code 17345 may continue to rise over the next five years, albeit at a potentially slower rate due to the higher interest rate environment. Average rent prices are also expected to increase moderately, driven by ongoing demand for rental properties and the overall rise in housing costs. However, the rate of increase for both home prices and rents may be tempered by broader economic factors and local market conditions.
In summary, zip code 17345 has demonstrated resilience in its housing market, with steady homeownership rates despite significant increases in average home prices. The interplay between federal interest rates, home prices, and rent costs has shaped the local real estate landscape, with recent years showing particularly strong growth in property values. As the market continues to evolve, balancing affordability with demand will likely be a key challenge for this Pennsylvania community.
