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Zip Code 18045: Rising Home Values and Shifting Ownership Patterns in Palmer Heights, 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
The zip code 18045, located in Palmer Heights, Pennsylvania, has experienced significant demographic and housing market changes over the past decade. This area has seen a gradual shift in homeownership rates and notable fluctuations in average home and rent prices, reflecting broader economic trends and local market dynamics.
From 2013 to 2022, the homeownership rate in zip code 18045 showed a gradual decline. In 2013, 85% of housing units were owner-occupied, but by 2022, this figure had decreased to 79%. This 6% drop in homeownership coincided with a substantial increase in average home prices. In 2013, the average home price was $214,564, which rose steadily to reach $344,949 by 2022, representing a 60.8% increase over this period.
The relationship between federal interest rates and homeownership rates in this area follows a well-established trend. From 2013 to 2016, when interest rates were historically low (0.11% to 0.4%), homeownership rates remained relatively stable, ranging from 85% to 82%. However, as interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), homeownership rates showed a slight decline, reaching 80% by 2019. This trend suggests that rising interest rates may have contributed to making homeownership less affordable for some residents.
Conversely, the percentage of renters in zip code 18045 has increased from 14% in 2013 to 21% in 2022. This 7% rise in renter-occupied housing units correlates with an increase in average rent prices. The average rent in 2013 was $1,291, which grew to $1,421 by 2022, an increase of 10.1%. The population in this zip code also grew during this period, from 28,567 in 2013 to 30,413 in 2022, potentially contributing to increased demand for rental properties.
As of 2024, the average home price in zip code 18045 has reached $376,771, marking a 9.2% increase from 2022. This continued appreciation in home values occurs alongside a federal interest rate of 5.33% in 2024, which is significantly higher than the rates seen in the previous decade. The 2023 average home price was $358,519, with a corresponding interest rate of 5.02%.
Looking ahead, predictive models suggest that average home prices in zip code 18045 may continue to rise over the next five years, potentially reaching around $425,000 by 2029. However, this growth rate may slow compared to the rapid appreciation seen in recent years. Average rent prices are also expected to increase, potentially reaching approximately $1,600 by 2029, reflecting continued demand for rental properties in the area.
In summary, zip code 18045 has experienced a gradual shift from homeownership to renting, with a 6% decrease in owner-occupied units and a corresponding 7% increase in renter-occupied units from 2013 to 2022. This trend has occurred alongside significant appreciation in average home prices and moderate increases in average rent prices. The area's population growth and fluctuations in federal interest rates have likely played roles in shaping these housing market dynamics. As the market continues to evolve, both homeowners and renters in this Pennsylvania community may face changing affordability challenges and opportunities in the coming years.
