Loading Content...
Zip Code 17603: Lancaster's Rising Home Values and Shifting Ownership Trends
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Lancaster, located in zip code 17603 in Pennsylvania, has experienced notable shifts in homeownership, average home prices, and average rent prices over the past decade. This vibrant community has seen a gradual increase in homeownership rates, coupled with significant growth in average home values and average rent prices.
The homeownership rate in zip code 17603 has shown a positive trend, increasing from 56% in 2016 to 61% in 2022. This rise in homeownership coincides with a substantial increase in average home prices. In 2016, the average home price was $156,479, which grew steadily to reach $254,232 by 2022, representing a 62.5% increase over six years. This trend suggests a strong correlation between rising home values and increasing homeownership rates in the area.
Federal interest rates have played a significant role in shaping homeownership trends in zip code 17603. From 2013 to 2016, when interest rates were historically low (ranging from 0.09% to 0.40%), homeownership rates remained relatively stable around 57-58%. As interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, homeownership rates surprisingly continued to increase, reaching 61% by 2022. This suggests that other factors, such as local economic conditions or housing market dynamics, may have offset the potential negative impact of rising interest rates on homeownership in this area.
The renter population in zip code 17603 has shown an inverse relationship to homeownership rates, decreasing from 44% in 2016 to 39% in 2022. Despite this decrease, average rent prices have consistently risen. In 2013, the average rent was $983, which increased to $1,131 by 2022, representing a 15% increase over nine years. This upward trend in rent prices, despite a decreasing renter population, may indicate a tightening rental market or an increase in higher-quality rental properties in the area.
In 2023 and 2024, the housing market in zip code 17603 continued to show strong growth. The average home price reached $271,638 in 2023 and further increased to $285,242 in 2024, representing a 12.2% increase over two years. This growth occurred despite significantly higher federal interest rates, which stood at 5.02% in 2023 and 5.33% in 2024, indicating robust demand and resilience in the local housing market.
Looking ahead, based on historical trends and current market conditions, we can project continued growth in both average home prices and average rent prices for zip code 17603 over the next five years. Average home prices are expected to maintain their upward trajectory, potentially reaching around $350,000 by 2029. Average rent prices are likely to follow suit, possibly exceeding $1,300 per month within the same timeframe. However, the rate of increase may moderate compared to recent years due to higher interest rates and potential market stabilization.
In summary, zip code 17603 in Lancaster has demonstrated a strong housing market with increasing homeownership rates, rising average home values, and growing average rent prices. The area has shown resilience in the face of changing interest rates, suggesting a robust local economy and desirable living conditions. As the community continues to evolve, it is likely to remain an attractive location for both homeowners and renters, with steady growth in property values and rental rates anticipated in the coming years.
