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Zip Code 17740: Rising Home Values and Ownership Rates in Rauchtown, 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 17740, located in Rauchtown, Pennsylvania, has experienced significant shifts in homeownership rates and housing prices over the past decade. This rural area has seen a notable increase in homeownership, coupled with fluctuating average home prices and rent costs.
The ownership percentage in zip code 17740 has shown a strong upward trend, particularly in recent years. In 2013, the homeownership rate was 75%, which remained relatively stable until 2020 when it began to climb significantly. By 2022, the ownership rate had reached 85%, marking a substantial 10 percentage point increase over nine years. This rise in homeownership coincides with an overall increase in average home prices. The average home price in 2013 was $135,055, and it steadily rose to $192,779 by 2022, representing a 42.7% increase over this period.
The relationship between federal interest rates and homeownership rates in this zip code presents an interesting pattern. Despite historically low interest rates between 2013 and 2021 (ranging from 0.08% to 2.16%), the homeownership rate remained relatively stable until 2020. However, as interest rates began to rise in 2022 to 1.68%, homeownership in the area saw a significant jump from 78% in 2020 to 85% in 2022. This suggests that local factors may have had a stronger influence on homeownership trends than national interest rates in this particular area.
Conversely, the percentage of renters in zip code 17740 has decreased over time. In 2013, renters made up 25% of the population, but by 2022, this figure had dropped to just 15%. Despite this decrease in the renter population, average rent prices have shown some volatility. The average rent was $753 in 2013, peaked at $838 in 2021, and then returned to $753 in 2022. This fluctuation in rent prices, despite a decreasing renter population, could indicate a complex interplay of local economic factors and housing supply dynamics.
Looking at the most recent data, the average home price in zip code 17740 continued to rise, reaching $199,102 in 2023 and $205,702 in 2024. This represents a 6.7% increase from 2022 to 2024, indicating a continued strong housing market in the area. Simultaneously, federal interest rates have increased significantly, reaching 5.02% in 2023 and 5.33% in 2024. Despite these higher interest rates, the housing market in this zip code appears to remain robust.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 17740 will continue to rise, potentially reaching around $230,000 by 2029. This projection is based on the consistent upward trend observed over the past decade. For rent prices, the forecast suggests a more moderate increase, potentially reaching an average of around $900 per month by 2029, assuming the local economic conditions remain stable.
In summary, zip code 17740 has experienced a significant increase in homeownership rates, rising from 75% in 2013 to 85% in 2022. This trend has been accompanied by a steady increase in average home prices, which have continued to rise into 2024. The area has also seen a decrease in the renter population, with fluctuating rent prices. These trends suggest a strong local housing market that has shown resilience even in the face of rising interest rates, indicating that local factors may play a significant role in shaping the housing landscape of this Pennsylvania community.
