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Zip Code 18330: Rising Home Values and Ownership Rates in Effort, 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 18330, located in Effort, Pennsylvania, has experienced notable shifts in homeownership rates and housing costs over the past decade. This area has maintained a consistently high rate of owner-occupied housing, with a slight upward trend in recent years.
The homeownership rate in zip code 18330 has shown a steady increase, rising from 87% in 2016 to 91% in 2022. This upward trend in homeownership coincides with significant growth in average home prices. In 2016, the average home price was $150,952, which has nearly doubled to $284,717 by 2022. This substantial increase in home values may have contributed to the area's attractiveness for homeowners, despite the potential for higher mortgage costs.
The relationship between federal interest rates and homeownership rates in this zip code appears to follow the general trend of lower interest rates encouraging homeownership. For instance, when interest rates were at historic lows between 2020 and 2021 (0.38% and 0.08% respectively), the homeownership rate increased from 90% to 91%. This suggests that the low-cost financing environment may have incentivized more residents to purchase homes.
Renter percentages in zip code 18330 have conversely decreased from 12% in 2016 to 9% in 2022. Interestingly, average rent prices have fluctuated during this period without showing a clear upward or downward trend. The average rent was $1,246 in 2016, dropped to $1,153 in 2017, and then settled at $1,155 in 2022. These fluctuations in rent prices, coupled with the decreasing renter population, suggest a shifting preference towards homeownership in the area, possibly driven by the long-term investment potential of rising home values.
In 2023 and 2024, the housing market in zip code 18330 continued its upward trajectory. The average home price reached $295,026 in 2023 and further increased to $303,379 in 2024. This represents a 3.5% year-over-year increase from 2023 to 2024. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, which could potentially impact future homeownership trends.
Looking ahead, based on the historical data and current trends, we can project that average home prices in zip code 18330 may continue to rise over the next five years, albeit potentially at a slower rate due to higher interest rates. If the current trajectory persists, average home prices could potentially reach around $350,000 by 2029. Average rent prices, which have remained relatively stable, might see modest increases, potentially reaching approximately $1,300 by 2029, assuming continued preference for homeownership and limited rental inventory growth.
In summary, zip code 18330 has demonstrated a strong trend towards homeownership, with increasing owner-occupied rates and rising home values. The area has shown resilience in maintaining high homeownership rates even as home prices have nearly doubled since 2016. While renter percentages have decreased, rent prices have remained relatively stable. The coming years may see continued growth in home values, albeit potentially tempered by higher interest rates, while rent prices may experience modest increases.
