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Zip Code 17827: Freeburg's Rising Home Values and Ownership Rates
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
Freeburg, situated in zip code 17827 in Pennsylvania, has witnessed significant changes in its housing market over the past decade. This small community has experienced fluctuations in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market conditions.
The homeownership rate in Freeburg has demonstrated a general upward trend from 2013 to 2022. In 2013, the homeownership rate was 75%, increasing to 81% by 2022. This overall rise suggests a growing preference for homeownership in the area. The peak homeownership rate was observed in 2021 at 87%, before slightly decreasing in 2022. The trend in homeownership rates indicates a potentially favorable housing market for buyers during this period.
Federal interest rates have significantly influenced homeownership trends. From 2013 to 2020, interest rates remained relatively low, ranging from 0.09% to 2.16%. This low-interest environment likely contributed to the rising homeownership rates observed during this period. For example, as interest rates dropped from 2.16% in 2019 to 0.38% in 2020, the homeownership rate increased from 80% to 86%, demonstrating the inverse relationship between interest rates and homeownership.
Rental trends in Freeburg have shown an inverse relationship to homeownership rates. The percentage of renters decreased from 25% in 2013 to 18% in 2022. However, average rent prices have experienced fluctuations. In 2013, the average rent was $731, which decreased to $624 in 2015 before gradually increasing to $974 in 2022. This represents a 33% increase in average rent prices over the nine-year period. The population growth from 456 in 2013 to 568 in 2022 may have contributed to the upward pressure on rent prices despite the decreasing percentage of renters.
In 2023, the average home price in Freeburg was $181,889, and in 2024, it increased slightly to $183,163. This represents a modest year-over-year increase of approximately 0.7%. Concurrently, federal interest rates rose from 5.02% in 2023 to 5.33% in 2024, potentially impacting homebuying affordability and market dynamics.
Looking ahead, based on the observed trends and current market conditions, we can project potential scenarios for the next five years. Average home prices are likely to continue their upward trajectory, albeit at a moderate pace. Assuming a similar growth rate to the 2023-2024 period, average home prices could reach approximately $190,000 by 2029. Average rent prices, which have shown more volatility, may continue to increase but at a slower rate than seen in recent years. A conservative estimate would put average rents around $1,100-$1,200 by 2029.
In summary, Freeburg has experienced a trend towards increased homeownership, with rates rising from 75% to 81% between 2013 and 2022. This trend has been accompanied by fluctuations in average rent prices and a recent modest increase in average home prices. The interplay between federal interest rates, local population growth, and housing market dynamics will continue to shape the real estate landscape in this Pennsylvania community in the coming years.
