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Zip Code 18328: Birchwood Lakes's Robust Homeownership Amid Rising Home Values
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 18328, located in Birchwood Lakes, Pennsylvania, presents an intriguing case study of homeownership and housing market dynamics. This area has maintained a consistently high rate of homeownership, hovering around 88-90% throughout the past decade, while experiencing significant fluctuations in average home prices and rent costs.
The homeownership rate in zip code 18328 has remained remarkably stable, with only minor fluctuations between 87% and 90% from 2013 to 2022. This stability in homeownership persisted despite substantial changes in average home prices. In 2013, the average home price was $90,681, which steadily increased to $232,445 by 2022, representing a dramatic 156% increase over nine years. Interestingly, this substantial rise in home prices did not significantly impact the high rate of homeownership in the area.
Federal interest rates have played a crucial role in shaping homeownership trends. The period from 2013 to 2016 saw historically low interest rates, ranging from 0.09% to 0.4%. During this time, homeownership in zip code 18328 remained high, likely supported by these favorable borrowing conditions. As interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), homeownership rates in the area showed remarkable resilience, maintaining levels around 89-90%.
Renter percentages in zip code 18328 have remained relatively low, fluctuating between 9% and 13% from 2013 to 2022. Despite this small renter population, average rent prices have shown considerable volatility. In 2013, the average rent was $1,363, which peaked at $1,587 in 2016 before declining to $1,255 by 2022. This trend doesn't appear to correlate strongly with the minor changes in renter percentages, suggesting other factors, such as local economic conditions or housing supply, may have more influence on rent prices in this area.
As of 2024, the average home price in zip code 18328 has reached $245,691, continuing the upward trend observed in previous years. This represents a 2.3% increase from the 2023 average of $240,097. Notably, the federal interest rate has also risen significantly, reaching 5.33% in 2024, up from 5.02% in 2023. Despite these higher interest rates, which typically make mortgages more expensive, the area's home prices continue to appreciate, indicating strong demand or limited supply in the local housing market.
Looking ahead, based on the historical data and current trends, we can project that average home prices in zip code 18328 are likely to continue their upward trajectory over the next five years, albeit potentially at a more moderate pace due to higher interest rates. Average rent prices, which have shown more volatility, may stabilize or see modest increases, influenced by the area's consistently low renter population and the overall housing market conditions.
In summary, zip code 18328 demonstrates a remarkably stable and high rate of homeownership, which has persisted despite significant increases in average home prices and fluctuations in federal interest rates. The area's housing market has shown strong appreciation, with average home prices more than doubling over the past decade. While rent prices have been more volatile, they appear to have less impact on the overall housing dynamics of this predominantly owner-occupied area. The continued rise in home prices, even in the face of higher interest rates, suggests a robust and resilient local housing market.
