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Zip Code 17581: Rising Home Values and Shifting Ownership in Terre Hill, 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
Terre Hill, located in zip code 17581 in Pennsylvania, has experienced significant changes in homeownership rates and housing prices over the past decade. This analysis explores the trends in ownership percentages, average home prices, and average rent prices in this area. The homeownership rate in Terre Hill has fluctuated considerably between 2013 and 2022. In 2013, the ownership rate was 70%. It peaked in 2019 at 78% before declining to 59% by 2022. This trend coincides with changes in average home prices, which have shown a steady increase over the same period. In 2013, the average home price was $163,018, and by 2022, it had risen to $275,517, representing a substantial 69% increase over nine years.
The relationship between federal interest rates and homeownership rates in Terre Hill shows some correlation. As interest rates remained low between 2013 and 2020 (ranging from 0.09% to 0.38%), homeownership rates generally remained above 65%. However, as interest rates began to rise in 2021 and 2022 (0.08% to 1.68%), homeownership rates dropped to 59%, suggesting that higher interest rates may have impacted affordability and homebuying decisions in the area.
Renter percentages in Terre Hill have inversely mirrored the homeownership trends, increasing from 30% in 2013 to 41% in 2022. Average rent prices have also shown an upward trend, rising from $803 in 2013 to $954 in 2022, an increase of about 19%. The population of the zip code decreased from 889 in 2013 to 693 in 2022, which may have influenced the rental market dynamics.
In 2023 and 2024, the housing market in Terre Hill continued to experience growth. The average home price reached $295,460 in 2023 and further increased to $306,454 in 2024. This represents a 7.2% increase from 2022 to 2023 and a 3.7% increase from 2023 to 2024. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, potentially impacting homebuying affordability in the area.
Looking ahead, based on the historical data and current trends, we can project potential scenarios for the next five years. If the current trajectory continues, average home prices in Terre Hill could potentially reach around $350,000 to $375,000 by 2029. Average rent prices might increase to approximately $1,100 to $1,200 per month. However, these projections assume a continuation of current economic conditions and housing market trends.
In summary, Terre Hill has experienced a significant shift in its housing landscape over the past decade. The area has seen a decrease in homeownership rates, particularly in recent years, coupled with substantial increases in average home prices. The rental market has grown, both in terms of the percentage of renters and average rent prices. These trends, along with the recent sharp increase in interest rates, suggest a changing dynamic in the local housing market that may continue to evolve in the coming years.
