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Zip Code 18621: Rising Home Values and High Ownership Rates in Silkworth, 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 18621, located in Silkworth, Pennsylvania, presents an interesting case study of homeownership and housing market trends. This area has maintained consistently high homeownership rates over the years, with average home prices steadily increasing and average rent prices fluctuating.
The homeownership rate in zip code 18621 has remained remarkably stable, hovering around 87-90% from 2013 to 2022. This high rate of homeownership coincides with a steady increase in average home prices. In 2013, the average home price was $137,580, and by 2022, it had risen to $209,716, representing a 52.4% increase over this period. This upward trend in home prices did not significantly impact homeownership rates, suggesting a strong preference for homeownership in this area despite rising costs.
Federal interest rates have played a role in maintaining high homeownership rates in zip code 18621. From 2013 to 2020, interest rates remained relatively low, ranging from 0.09% to 2.16%. This period of low interest rates likely contributed to the sustained high levels of homeownership by making mortgages more affordable. Even as interest rates began to rise in 2022 to 1.68%, the homeownership rate in the area remained stable at 89%.
Renter percentages in zip code 18621 have remained low, fluctuating between 10% and 14% from 2013 to 2022. Average rent prices have shown some volatility during this period. In 2013, the average rent was $777, rising to a peak of $1,034 in 2018, before settling at $841 in 2022. Despite these fluctuations in rent prices, the renter population has remained relatively small, suggesting that renting is not the preferred housing option in this area.
Looking at the most recent data, average home prices in zip code 18621 continued to rise in 2023 and 2024, reaching $209,986 and $218,389 respectively. This represents a 4% increase from 2022 to 2024. Concurrently, federal interest rates have significantly increased to 5.02% in 2023 and 5.33% in 2024, which could potentially impact future homeownership rates and housing affordability in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 18621 will continue to rise, albeit at a potentially slower rate due to higher interest rates. We project average home prices could reach approximately $240,000 to $250,000 by 2029. Average rent prices are expected to follow a similar upward trend, potentially reaching $950 to $1,000 per month in the same timeframe.
In summary, zip code 18621 demonstrates a strong preference for homeownership, with consistently high rates despite rising home prices. The area has shown resilience in maintaining these high homeownership levels even in the face of fluctuating economic conditions. The recent sharp increase in interest rates may present new challenges to this trend, potentially affecting affordability and future homeownership rates. However, the historical stability of homeownership in this area suggests that it may continue to be a preferred option for residents.
