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Zip Code 17408: Rising Home Values and Shifting Ownership Patterns in Shiloh, 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 17408, located in Shiloh, Pennsylvania, has experienced notable shifts in homeownership rates and housing prices over the past decade. This area has maintained a relatively high rate of homeownership, with a slight downward trend in recent years, while average home prices have shown significant growth. The homeownership rate in zip code 17408 has experienced a gradual decline from 81% in 2014 to 75% in 2022. During this same period, average home prices have shown a consistent upward trend. In 2014, the average home price was $159,109, which increased to $247,124 by 2022, representing a substantial 55% growth over eight years. This inverse relationship between homeownership rates and average home prices suggests that rising property values may be making homeownership less accessible for some residents in the area.
Federal interest rates have played a significant role in shaping homeownership trends in zip code 17408. From 2013 to 2016, when interest rates were at historic lows (ranging from 0.11% to 0.40%), homeownership rates remained stable at around 80-81%. However, as interest rates began to rise from 2017 (1%) to 2019 (2.16%), we observed a slight decline in homeownership rates to 79% by 2019. The sudden drop in interest rates in 2020 (0.38%) and 2021 (0.08%) did not immediately reverse this trend, as homeownership continued to decrease to 75% by 2022, possibly due to other economic factors at play.
As homeownership rates declined, the percentage of renters in zip code 17408 naturally increased from 18% in 2014 to 25% in 2022. Interestingly, average rent prices have shown some fluctuation during this period. In 2013, the average rent was $1,047, which peaked at $1,164 in 2018 before slightly decreasing to $1,097 in 2022. This trend suggests that while more residents are renting, the rental market has not seen consistent price increases, possibly due to factors such as increased housing supply or local economic conditions. The population in the zip code has grown from 23,085 in 2014 to 23,906 in 2022, which may have contributed to the increased demand for rental properties.
Looking at the most recent data, average home prices in zip code 17408 continued their upward trajectory, reaching $263,406 in 2023 and $273,336 in 2024. This represents a 10.6% increase from 2022 to 2023 and a further 3.8% increase from 2023 to 2024. Concurrently, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homeownership rates and potentially slow down the pace of home price appreciation.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 17408 will continue to rise, albeit at a potentially slower rate due to higher interest rates. By 2029, average home prices could reach approximately $320,000 to $340,000, assuming a moderate annual growth rate of 3-4%. For average rent prices, we expect a gradual increase to around $1,250 to $1,300 per month by 2029, considering historical fluctuations and potential increased demand for rental properties.
In summary, zip code 17408 has experienced a gradual shift towards more renters and fewer homeowners over the past decade, coinciding with significant increases in average home prices. The interplay between federal interest rates, housing affordability, and local economic factors has shaped these trends. As we look to the future, continued growth in both home prices and rent is expected, though the rate of increase may be moderated by higher interest rates and other economic considerations.
