Loading Content...
Zip Code 18031: Rising Home Values and Fluctuating Ownership in Breinigsville, Pennsylvania
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Zip code 18031, located in Breinigsville, Pennsylvania, has experienced significant changes in its housing market over the past decade. This area has seen a notable shift in homeownership rates and substantial increases in both average home prices and average rent prices. The homeownership rate in zip code 18031 has fluctuated over the years, showing an overall declining trend from 2013 to 2018, followed by a recovery. In 2013, the homeownership rate stood at 77%, but it decreased to 62% by 2018. However, there was a reversal of this trend in recent years, with the homeownership rate rising to 75% in 2022. This change in homeownership rates appears to correlate with the trends in average home prices. The average home price in the area increased from $246,984 in 2013 to $399,420 in 2022, representing a substantial 61.7% increase over this period.
The relationship between federal interest rates and homeownership rates in this zip code shows some interesting patterns. During the period of historically low interest rates from 2013 to 2016 (ranging from 0.09% to 0.40%), homeownership rates actually declined from 77% to 70%. However, as interest rates began to rise more significantly from 2017 onwards, reaching 1.68% in 2022, homeownership rates stabilized and then increased to 75%. This suggests that other local factors may have had a stronger influence on homeownership rates than national interest rates in this particular area.
The renter percentage in zip code 18031 showed an inverse relationship to homeownership rates, naturally increasing as homeownership declined. The renter population peaked at 37% in 2018, coinciding with the lowest point of homeownership. Average rent prices have shown volatility but an overall upward trend. In 2013, the average rent was $1,491, which increased to $1,647 in 2017, before slightly decreasing to $1,468 in 2022. It's worth noting that the population of the zip code grew significantly during this period, from 7,552 in 2013 to 12,008 in 2022, which likely contributed to the demand for rental properties and the overall housing market dynamics.
In 2023 and 2024, the housing market in zip code 18031 continued to show strong growth. The average home price reached $421,984 in 2023 and further increased to $439,709 in 2024. This represents a substantial 10.1% increase from 2022 to 2024. Concurrently, federal interest rates rose significantly, reaching 5.02% in 2023 and 5.33% in 2024, which are the highest levels seen since 2007.
Looking ahead, based on historical trends and current market conditions, we can project continued growth in both average home prices and average rent prices for zip code 18031 over the next five years. Average home prices are expected to maintain their upward trajectory, potentially reaching around $525,000 by 2029. Average rent prices, which have shown more volatility, are likely to stabilize and gradually increase, potentially reaching approximately $1,700 by 2029.
In summary, zip code 18031 has demonstrated a dynamic housing market characterized by fluctuating homeownership rates, steadily increasing average home prices, and volatile but generally rising average rent prices. The area has shown resilience in its housing market, with recent trends indicating a preference for homeownership despite rising home prices and interest rates. The continued population growth in the area suggests ongoing demand for housing, which is likely to support both the ownership and rental markets in the coming years.
