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Zip Code 18944: Robust Home Values and Ownership Trends in Perkasie, 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 18944, located in Perkasie, Pennsylvania, has shown interesting trends in homeownership and housing prices over the past decade. This area has maintained a consistently high rate of homeownership while experiencing significant fluctuations in average home prices and rent.
The homeownership rate in zip code 18944 has remained relatively stable, hovering around 78-80% from 2013 to 2022. During this period, average home prices have shown a notable upward trend. In 2013, the average home price was $282,780, which increased to $441,632 by 2022, representing a substantial 56% growth over nine years. This trend suggests a strong correlation between sustained high homeownership rates and rising property values in the area.
Federal interest rates have played a significant role in homeownership trends. From 2013 to 2016, when interest rates were extremely low (0.11% to 0.40%), homeownership rates in the zip code remained steady at around 77-78%. As interest rates began to rise more significantly from 2017 (1.00%) to 2019 (2.16%), homeownership rates actually increased slightly to 79%, possibly indicating a rush to secure mortgages before rates climbed further. The stability in homeownership despite rising interest rates suggests a strong local housing market and continued desire for homeownership in this area.
Renter percentages in zip code 18944 have shown slight fluctuations, ranging from 20% to 23% between 2013 and 2022. Interestingly, average rent prices have not followed a consistent upward trend like home prices. In 2013, the average rent was $1,428, which decreased to $1,366 in 2015 before rising again to $1,468 in 2022. This represents only a 2.8% increase over nine years, significantly lower than the growth in home prices. The relatively stable renter percentage, coupled with modest rent increases, may indicate a balanced rental market in the area.
In 2023 and 2024, the housing market in zip code 18944 continued its upward trajectory. The average home price reached $462,548 in 2023 and further increased to $480,514 in 2024, representing a 4.7% and 3.9% year-over-year growth, respectively. This growth occurred despite the sharp rise in federal interest rates, which stood at 5.02% in 2023 and 5.33% in 2024, levels not seen since before the 2008 financial crisis.
Looking ahead, predictive models suggest that the robust growth in average home prices in zip code 18944 is likely to continue, albeit at a potentially slower pace due to higher interest rates. Over the next five years, average home prices could reach the $550,000 to $600,000 range. Average rent prices are expected to show more moderate growth, potentially reaching $1,600 to $1,700 per month by 2029.
In summary, zip code 18944 has demonstrated a resilient housing market characterized by high homeownership rates and strong appreciation in home values. Despite rising interest rates, the area has maintained its appeal to homeowners. The rental market, while stable, has not seen the same level of price growth as the homeownership sector. These trends point to a continued strong housing market in this Pennsylvania borough, with potential for further appreciation in both home values and rental rates in the coming years.
