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Zip Code 17578: Rising Home Values and Shifting Ownership in Reamstown, 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 17578, located in Reamstown, Pennsylvania, has experienced notable shifts in homeownership rates and housing prices over the past decade. This area has seen a gradual increase in population, reaching 6,529 residents in 2022, which has influenced its housing market dynamics.
The homeownership rate in zip code 17578 has shown a slight decline from 2013 to 2022. In 2013, the area boasted an 84% homeownership rate, which decreased to 81% by 2022. This trend coincides with a significant increase in average home prices. In 2013, the average home price was $190,931, which rose steadily to reach $311,482 by 2022, representing a substantial 63% increase over this period.
Federal interest rates have played a role in 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 83%. However, as interest rates began to rise more significantly from 2017 onwards, reaching 1.68% in 2022, there was a slight decrease in homeownership rates to 81%. This aligns with the general trend of lower interest rates encouraging homeownership due to more affordable financing options.
The renter population in zip code 17578 has seen a modest increase, from 16% in 2013 to 19% in 2022. This change corresponds with fluctuations in average rent prices. In 2013, the average rent was $1,052, which peaked at $1,229 in 2017 before settling at $1,150 in 2022. The population growth from 6,044 in 2013 to 6,529 in 2022 may have contributed to the increased demand for rental properties, despite the slight decrease in average rent prices in recent years.
Moving to more recent data, the average home price in zip code 17578 continued its upward trajectory, reaching $333,642 in 2023 and further increasing to $345,740 in 2024. This represents a 10.9% increase from 2022 to 2024. Concurrently, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024, which may impact future homeownership rates and housing affordability in the area.
Looking ahead, predictive models suggest that average home prices in zip code 17578 are likely to continue their upward trend over the next five years, potentially reaching around $400,000 by 2029. This projection is based on the consistent growth observed over the past decade. Average rent prices are also expected to increase, albeit at a more moderate pace, potentially reaching approximately $1,300 to $1,400 per month by 2029.
In summary, zip code 17578 has experienced a gradual shift towards a slightly higher proportion of renters, coupled with substantial increases in average home prices. The area has maintained a high homeownership rate despite rising home prices and recent increases in interest rates. The continued population growth and rising property values suggest a strong demand for housing in this area, which is likely to persist in the coming years.
