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Zip Code 17960: Rising Home Values and Stable Ownership in Rural 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 17960, located in New Ringgold, Pennsylvania, presents an interesting case study of housing trends in a small rural community. This area has experienced fluctuations in homeownership rates, average home prices, and average rent prices over the past decade. The overall trend shows a slight decrease in homeownership, coupled with significant increases in both average home prices and average rent prices.
Homeownership rates in zip code 17960 have shown a gradual decline from 2013 to 2022. In 2013, the homeownership rate was 88%, which decreased to 86% by 2022. This decline coincides with a substantial increase in average home prices. In 2013, the average home price was $150,835, which rose steadily to $251,468 by 2022, representing a 66.7% increase over nine years. This inverse relationship suggests that rising home prices may have made homeownership less attainable 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 0.1-0.4%. During this period, homeownership rates remained relatively stable at around 88-89%. However, as interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, we observed a slight decline in homeownership rates to 86%. This trend aligns with the general principle that lower interest rates tend to encourage homeownership due to more affordable financing options.
Renter percentages in zip code 17960 have shown a modest increase from 12% in 2013 to 13% in 2022. This change correlates with a significant rise in average rent prices. In 2013, the average rent was $719, which increased to $800 by 2022, representing an 11.3% increase. It's worth noting that the population in this zip code has remained relatively stable, growing from 3,654 in 2013 to 4,086 in 2022, a 11.8% increase. This population growth, combined with rising home prices, may have contributed to the increased demand for rental properties and subsequently higher rent prices.
In 2023 and 2024, we see a continuation of the upward trend in average home prices. The average home price in 2023 was $256,537, and in 2024 it further increased to $272,392. This represents a 6.2% increase in just one year. Concurrently, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024. These high interest rates, combined with rising home prices, may further impact homeownership rates in the coming years.
Looking ahead, our predictive models forecast continued growth in both average home prices and rent prices over the next five years. Average home prices are projected to increase by approximately 4-5% annually, potentially reaching around $330,000 by 2029. Average rent prices are expected to rise at a similar rate, potentially reaching $950-$1,000 per month by 2029.
In summary, zip code 17960 has experienced a gradual shift towards renting, with homeownership rates declining slightly as both average home prices and rent prices have increased significantly. The interplay between rising property values, increasing interest rates, and modest population growth has shaped these trends. Looking forward, we anticipate continued growth in both home prices and rent prices, which may further influence the balance between homeownership and renting in this community.
