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Zip Code 17501: Rising Home Values and Shifting Ownership Trends in Akron, 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 17501, located in Akron, Pennsylvania, has experienced notable shifts in homeownership rates and housing prices over the past decade. This area has seen a general trend of decreasing homeownership and increasing average home and rent prices, reflecting broader economic changes and local market dynamics.
The homeownership rate in zip code 17501 has shown a significant decline from 2013 to 2022. In 2013, 69% of residents were homeowners, but by 2022, this figure had dropped to 58%. This 11 percentage point decrease coincided with a substantial increase in average home prices. In 2013, the average home price was $168,251, which rose steadily to reach $277,340 by 2022, representing a 64.8% increase over this period. This inverse relationship suggests that rising home prices may have made homeownership less accessible for some residents.
Federal interest rates have played a role in shaping homeownership trends in the area. The period from 2013 to 2016 saw historically low interest rates, ranging from 0.11% to 0.4%. During this time, homeownership rates remained relatively stable, hovering around 69% to 63%. However, as interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), homeownership rates declined more rapidly, dropping to 52% by 2019. This trend aligns with the general principle that higher interest rates can make mortgages less affordable, potentially discouraging homeownership.
As homeownership rates declined, the percentage of renters in zip code 17501 increased from 31% in 2013 to 42% in 2022. This shift was accompanied by a rise in average rent prices. In 2013, the average rent was $942, which increased to $994 by 2022, representing a 5.5% increase. However, it's worth noting that rent prices fluctuated during this period, with a peak of $1,079 in 2021. The population of the area also grew from 4,204 in 2013 to 4,369 in 2022, which may have contributed to increased demand for rental properties and subsequent rent price increases.
Looking at the most recent data, average home prices in zip code 17501 continued to rise, reaching $296,876 in 2023 and $310,744 in 2024. This represents a 12% increase from 2022 to 2024. Simultaneously, federal interest rates have increased significantly, rising to 5.02% in 2023 and 5.33% in 2024. These higher interest rates, combined with elevated home prices, may present challenges for potential homebuyers in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 17501 will continue to rise, potentially reaching around $350,000 by 2029. This projection is based on the consistent upward trend observed over the past decade. Average rent prices are also expected to increase, potentially surpassing $1,200 per month within the next five years, assuming the current economic conditions and population growth trends persist.
In summary, zip code 17501 has experienced a significant shift from homeownership to renting over the past decade, driven by rising home prices and fluctuating interest rates. The area has seen substantial appreciation in property values, with average home prices nearly doubling from 2013 to 2024. As the community continues to evolve, these trends in housing affordability and ownership patterns will likely play a crucial role in shaping the local real estate market and community demographics in the coming years.
