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Zip Code 18938: Rising Home Values and Stable Ownership in New Hope, 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 18938, located in New Hope, Pennsylvania, has experienced notable shifts in its housing market over the past decade. This area, known for its charming small-town atmosphere and proximity to the Delaware River, has seen fluctuations in homeownership rates and significant changes in average home and rent prices.
Homeownership in the 18938 zip code has remained relatively stable, with a slight upward trend in recent years. In 2013, the homeownership rate was 85%, which dipped slightly to 83% in 2014 and 2016. However, by 2022, it had rebounded to 86%. This trend coincides with substantial growth in average home prices. In 2013, the average home price was $520,601, which steadily increased to $797,235 by 2022, representing a 53% increase over this period. The relationship between homeownership rates and average home prices suggests that despite rising costs, residents in this area have maintained a strong preference for homeownership.
Federal interest rates have played a significant role in shaping homeownership trends in the 18938 zip code. From 2013 to 2016, when interest rates were historically low (ranging from 0.11% to 0.40%), homeownership rates remained consistently high, between 83% and 85%. As interest rates began to rise more substantially from 2017 (1%) to 2019 (2.16%), homeownership rates showed resilience, even slightly increasing to 84% by 2019. This trend suggests that other factors, such as the desirability of the area, may have offset the potential negative impact of rising interest rates on homeownership.
Renter percentages in the 18938 zip code have fluctuated inversely to homeownership rates, ranging from 13% to 17% between 2013 and 2022. Interestingly, average rent prices have shown a general upward trend during this period. In 2013, the average rent was $1,568, which increased to $1,925 by 2021, representing a 23% increase. However, there was a slight decrease to $1,775 in 2022. The population of the area has remained relatively stable, with 15,036 residents in 2013 and 14,362 in 2022, suggesting that changes in rent prices are more likely influenced by market demand and property values rather than significant population shifts.
In 2023 and 2024, the housing market in the 18938 zip code continued its upward trajectory. The average home price reached $824,775 in 2023 and further increased to $857,539 in 2024, representing a 7.5% increase over two years. This growth occurred despite a significant rise in federal interest rates, which stood at 5.02% in 2023 and 5.33% in 2024. These figures indicate a robust local housing market that has maintained its appeal even in the face of higher borrowing costs.
Looking ahead, predictive models suggest that the 18938 zip code will likely continue to see growth in both average home and rent prices over the next five years. Based on historical trends and current market conditions, average home prices could potentially reach or exceed $950,000 by 2029. Similarly, average rent prices may continue their upward trajectory, potentially surpassing $2,200 per month within the same timeframe. However, these projections assume relatively stable economic conditions and sustained demand for housing in the area.
In summary, the 18938 zip code has demonstrated a resilient and growing housing market over the past decade. Key findings include a stable and high rate of homeownership, significant appreciation in average home values, and a general upward trend in rent prices. The area has shown the ability to maintain its appeal and housing demand even in the face of rising interest rates and home prices, suggesting a strong local economy and desirable living conditions that continue to attract both homeowners and renters.
