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Zip Code 18446: Rising Home Values and Ownership Rates 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 18446, located in Nicholson, Pennsylvania, has experienced significant shifts in homeownership rates and housing prices over the past decade. This rural area has seen a general trend of increasing homeownership, coupled with fluctuating average home and rent prices.
The ownership percentage in zip code 18446 has shown a steady increase from 78% in 2013 to 83% in 2022. This rise in homeownership coincides with an overall upward trend in average home prices. In 2013, the average home price was $154,698, which rose to $204,627 by 2022, representing a 32.3% increase over nine years. This trend suggests a growing preference for homeownership in the area, possibly driven by the long-term investment potential of real estate.
Federal interest rates have played a significant role in shaping homeownership trends. From 2013 to 2016, interest rates remained very low, hovering around 0.1-0.4%. During this period, homeownership in zip code 18446 increased from 78% to 81%. As interest rates began to rise more substantially from 2017 onwards, reaching 1.68% in 2022, homeownership continued to increase, albeit at a slower pace, reaching 83% in 2022. This suggests that while low interest rates initially encouraged homeownership, other factors such as local economic conditions and housing market dynamics may have sustained the trend.
The renter percentage in zip code 18446 has correspondingly decreased from 22% in 2013 to 17% in 2022. Despite this decline, average rent prices have shown an overall upward trend. In 2013, the average rent was $747, which increased to $909 by 2022, representing a 21.7% rise. This increase in rent prices, coupled with a decreasing renter population, might indicate a tightening rental market with fewer but potentially higher-quality rental properties available.
Looking at more recent data, the average home price in zip code 18446 continued to rise, reaching $207,517 in 2023 and $207,866 in 2024. This represents a modest increase of 0.17% from 2023 to 2024, suggesting a potential stabilization in the housing market. Concurrently, federal interest rates have increased significantly, reaching 5.02% in 2023 and 5.33% in 2024, which may impact future homeownership trends and housing affordability in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 18446 will continue to rise, albeit at a more moderate pace. By 2029, average home prices could potentially reach around $225,000 to $230,000, assuming current economic conditions persist. For rent prices, the forecast suggests a continued upward trend, potentially reaching an average of $1,100 to $1,200 per month by 2029.
In summary, zip code 18446 has demonstrated a clear trend towards increased homeownership over the past decade, accompanied by rising average home and rent prices. The area has shown resilience in maintaining these trends despite fluctuations in federal interest rates. As we move forward, the interplay between interest rates, housing supply, and local economic factors will likely continue to shape the real estate landscape in this Pennsylvania borough.
