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Zip Code 17745: Rising Home Values and Shifting Ownership in McElhattan, 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 17745, encompassing McElhattan in Pennsylvania, presents an intriguing landscape of housing trends. This area has experienced notable fluctuations in homeownership rates, average home prices, and average rent prices over the past decade. The region has maintained a relatively stable population, with slight variations influencing the housing market dynamics.
Homeownership rates in zip code 17745 have shown a slight decline from 2013 to 2021, dropping from 61% to 59%. However, there was a notable uptick in 2022, with homeownership reaching 62%. This increase coincided with a significant rise in average home prices, which grew from $122,647 in 2010 to $180,029 in 2022, representing a 46.8% increase over 12 years. The most substantial annual growth occurred between 2020 and 2021, with a 9.1% increase from $148,988 to $162,519.
Federal interest rates have played a crucial role in shaping homeownership trends. The period from 2010 to 2015 saw historically low interest rates, ranging from 0.09% to 0.18%, which likely contributed to the relatively stable homeownership rates during this time. As interest rates began to rise in 2016, reaching 1.83% by 2018, we observed a slight decline in homeownership percentages. However, the sharp drop in interest rates in 2020 and 2021 (0.38% and 0.08% respectively) may have contributed to the rebound in homeownership seen in 2022.
Renter percentages in zip code 17745 increased from 39% in 2013 to 41% in 2021, before decreasing to 38% in 2022. Average rent prices have shown a consistent upward trend, rising from $673 in 2013 to $805 in 2022, a 19.6% increase. The most significant annual increase occurred between 2020 and 2021, with average rent jumping from $809 to $864, a 6.8% rise. This increase coincided with a population decrease from 17,330 in 2020 to 16,709 in 2021, suggesting that other factors beyond population changes were influencing rent prices.
Looking at the most recent data, average home prices in zip code 17745 continued to rise in 2023 and 2024, reaching $181,583 and $187,410 respectively. This represents a modest 0.9% increase from 2022 to 2023, followed by a more substantial 3.2% growth from 2023 to 2024. Interestingly, these price increases occurred despite a significant jump in federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024. This suggests a robust demand for housing in the area, potentially driven by factors such as local economic conditions or housing supply constraints.
Applying predictive models to forecast 5-year trends, we anticipate continued growth in both average home prices and average rent prices in zip code 17745. Based on historical patterns and recent data, average home prices could potentially reach around $210,000 by 2029, assuming a moderate annual growth rate of 2-3%. Average rent prices might increase to approximately $900-$950 per month over the same period, following the established upward trajectory.
In summary, zip code 17745 has demonstrated resilience in its housing market, with steadily increasing average home and rent prices despite fluctuations in homeownership rates. The recent uptick in homeownership, coupled with rising property values, suggests a growing attractiveness of the area to potential buyers. The consistent increase in average rent prices, even during periods of population decline, indicates a strong rental market. As we look ahead, the interplay between interest rates, population changes, and housing demand will likely continue to shape the market dynamics in this Pennsylvania community.
