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Zip Code 17579: Rising Home Values and Declining Ownership in Strasburg, PA
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 17579, located in Strasburg, Pennsylvania, has experienced notable shifts in homeownership rates and property values over the past decade. This area, known for its rich Amish heritage and picturesque landscapes, has seen a gradual decrease in homeownership alongside rising average home prices and average rent costs.
The homeownership rate in zip code 17579 has shown a slight downward trend from 2013 to 2022. In 2013, 84% of residents were homeowners, but by 2022, this figure had decreased to 82%. Despite this minor decline, average home prices have steadily increased. In 2013, the average home price was $217,679, rising to $350,158 by 2022, representing a substantial 60.9% increase over nine years.
Federal interest rates have played a significant role in shaping homeownership trends in the area. From 2013 to 2016, when interest rates were historically low (ranging from 0.11% to 0.40%), homeownership rates remained relatively stable at around 84-85%. However, as interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), there was a corresponding decline in homeownership rates, dropping to 80% by 2019. This trend aligns with the general principle that lower interest rates tend to encourage homeownership due to more affordable financing options.
Renter percentages in zip code 17579 have shown an inverse relationship to homeownership rates, increasing from 16% in 2013 to 18% in 2022. This shift coincides with a rise in average rent prices. In 2013, the average rent was $1,040, which increased to $1,172 by 2022, representing a 12.7% increase. The population growth from 5,037 in 2013 to 5,252 in 2022 may have contributed to the increased demand for rental properties, potentially driving up rent prices.
Looking at the most recent data, the average home price in zip code 17579 reached $373,169 in 2023 and further increased to $391,098 in 2024. This represents a significant jump of 11.7% from 2022 to 2024. Concurrently, federal interest rates have risen sharply, reaching 5.02% in 2023 and 5.33% in 2024, which may impact future homeownership rates and property values.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 17579 will continue to rise, potentially reaching around $450,000 by 2029. Average rent prices are also expected to increase, possibly surpassing $1,300 per month within the same timeframe. These projections are based on historical trends and current market conditions.
In summary, zip code 17579 has experienced a slight decrease in homeownership rates over the past decade, coupled with significant increases in both average home prices and average rent costs. The interplay between federal interest rates, population growth, and local market dynamics has shaped these trends. Moving forward, the area is likely to see continued growth in property values and rental costs, potentially affecting the balance between homeowners and renters in this picturesque Pennsylvania community.
