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Zip Code 18955: Rising Home Values and Resilient Ownership in Richlandtown, PA
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 18955, located in Richlandtown, Pennsylvania, has experienced notable fluctuations in its housing market over the past decade. This small community, with a population of 1,531 in 2022, has seen interesting shifts in homeownership rates and property values that reflect broader economic trends.
The homeownership rate in zip code 18955 has shown a general decline from 2013 to 2020, followed by a recent uptick. In 2013, 84% of residents were homeowners, but this figure dropped to 75% by 2020. However, by 2022, the rate rebounded to 82%. Concurrently, average home prices have demonstrated a steady upward trajectory. In 2013, the average home price was $172,843, which rose to $304,829 by 2022, representing a substantial 76.4% increase over nine years.
Federal interest rates appear to have influenced homeownership rates in this area. The period of low interest rates from 2013 to 2016 (ranging from 0.09% to 0.4%) coincided with relatively high homeownership rates. As interest rates began to rise more significantly from 2017 onwards, reaching 1.83% in 2018, there was a corresponding decline in homeownership percentages. This trend aligns with the general economic principle that lower interest rates tend to encourage homeownership due to more affordable financing options.
The rental market in zip code 18955 has shown some interesting trends as well. The percentage of renters increased from 16% in 2013 to 25% in 2020, before decreasing to 18% in 2022. Average rent prices have fluctuated over this period, starting at $972 in 2013, peaking at $1,305 in 2021, and then decreasing to $1,009 in 2022. These changes in rent prices and renter percentages may be influenced by factors such as local economic conditions and housing availability.
Looking at the most recent data, the average home price in zip code 18955 reached $322,048 in 2023 and further increased to $337,423 in 2024. This represents a significant 10.7% increase from 2022 to 2024. Interestingly, this price growth occurred despite a sharp rise in federal interest rates, which stood at 5.02% in 2023 and 5.33% in 2024. This suggests strong demand for housing in the area, potentially driven by factors such as local economic growth or increased desirability of the location.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 18955 will continue to rise, albeit at a potentially slower rate due to higher interest rates. We project that by 2029, average home prices could reach approximately $400,000 to $425,000, assuming current economic conditions persist. For rent prices, we expect a moderate increase, potentially reaching an average of $1,200 to $1,300 per month by 2029, factoring in historical trends and anticipated economic factors.
In summary, zip code 18955 has demonstrated resilience in its housing market, with a recent rebound in homeownership rates and consistent growth in average home prices. The interplay between interest rates, homeownership, and property values highlights the complex dynamics at play in this local real estate market. As the community continues to evolve, these trends will likely shape its demographic and economic landscape in the coming years.
