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Zip Code 17821: Rising Home Values and Shifting Ownership Patterns in Riverside, 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 17821, located in Riverside, Pennsylvania, has seen notable shifts in its housing landscape over the past decade. This area, with a population of 20,291 in 2022, has experienced fluctuations in homeownership rates and significant changes in average home and rent prices. The overall trend shows a slight decrease in homeownership, coupled with generally rising average home prices and fluctuating average rent prices.
The homeownership rate in zip code 17821 has shown a gradual decline from 74% in 2013 to 71% in 2022. During this same period, average home prices have steadily increased. In 2013, the average home price was $174,756, and by 2022, it had risen to $257,905, representing a substantial 47.6% increase over nine years. This inverse relationship between homeownership rates and average home prices suggests that rising property values may be making homeownership less accessible for some residents.
Federal interest rates have played a significant role in shaping homeownership trends. From 2013 to 2016, interest rates remained extremely low, hovering around 0.1% to 0.4%. During this period, homeownership rates remained relatively stable at 73%. However, as interest rates began to rise more substantially from 2017 (1%) to 2019 (2.16%), we see a corresponding decline in homeownership rates, dropping to 69% by 2019. This trend aligns with the general principle that higher interest rates can make mortgages less affordable, potentially discouraging homeownership.
The renter population in zip code 17821 has increased from 26% in 2013 to 28% in 2022. Average rent prices have shown volatility during this period. In 2013, the average rent was $814, rising to a peak of $903 in 2021, before dropping to $803 in 2022. This represents a slight overall decrease of 1.3% from 2013 to 2022, despite the fluctuations. The increase in the renter population, coupled with the overall stability in rent prices, suggests a growing demand for rental properties in the area.
In 2023 and 2024, average home prices in zip code 17821 continued to rise, reaching $262,675 in 2023 and $265,689 in 2024. This represents a modest increase of 1.1% from 2023 to 2024. Concurrently, federal interest rates have significantly increased to 5.02% in 2023 and 5.33% in 2024, potentially impacting homebuying decisions in the area.
Looking ahead, based on historical trends and current market conditions, we can project potential scenarios for the next five years. Average home prices in zip code 17821 are likely to continue their upward trajectory, albeit at a potentially slower rate due to higher interest rates. We might expect average home prices to reach around $290,000 to $300,000 by 2029. Average rent prices, which have shown more volatility, could stabilize or see modest increases, potentially reaching $850 to $900 by 2029, assuming continued demand for rental properties.
In summary, zip code 17821 has experienced a gradual shift towards renting, with homeownership rates declining slightly as average home prices have significantly increased. The interplay between federal interest rates, home prices, and homeownership rates has been evident, with higher interest rates correlating with lower homeownership. Despite some fluctuations, the area has seen overall growth in property values and a relatively stable rental market, suggesting a dynamic and evolving housing landscape in Riverside, Pennsylvania.
