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Zip Code 19604: Rising Home Values and Shifting Ownership Trends in Reading, 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 19604, located in Reading, Pennsylvania, has experienced significant shifts in its housing market over the past decade. This area has seen notable changes in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market dynamics.
The homeownership rate in ZIP code 19604 has shown a gradual decline from 2013 to 2022. In 2013, the area had a homeownership rate of 51%, which decreased to 47% by 2022. This decline in homeownership coincided with a substantial increase in average home prices. In 2013, the average home price was $46,235, which rose dramatically to $123,389 by 2022, representing a 167% increase over this period. This inverse relationship suggests that rising home prices may have made homeownership less attainable for some residents.
Federal interest rates have played a significant role in shaping homeownership trends. From 2013 to 2016, when interest rates were exceptionally low (ranging from 0.11% to 0.4%), the homeownership rate remained relatively stable at around 51%. However, as interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, the homeownership rate declined to 47%. This trend aligns with the general principle that lower interest rates tend to encourage homeownership by making mortgages more affordable.
The renter population in ZIP code 19604 has increased correspondingly with the decline in homeownership. The percentage of renters rose from 49% in 2013 to 53% in 2022. During this period, average rent prices also increased, albeit more moderately compared to home prices. In 2013, the average rent was $940, which grew to $926 by 2022, representing a relatively small fluctuation over the decade. The population of the ZIP code also increased from 27,402 in 2013 to 30,690 in 2022, potentially contributing to the demand for rental properties.
Looking at the most recent data, the average home price in ZIP code 19604 continued its upward trajectory, reaching $131,337 in 2023 and further increasing to $142,555 in 2024. This represents a 15.5% increase from 2022 to 2024. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, which may impact future homeownership trends in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in ZIP code 19604 will continue to rise, potentially reaching around $180,000 by 2029. This projection is based on the consistent upward trend observed over the past decade. Average rent prices are expected to show more moderate growth, potentially increasing to approximately $1,050 by 2029, assuming the trend of small annual increases continues.
In summary, ZIP code 19604 has experienced a notable shift towards renting, with homeownership rates declining as average home prices have significantly increased. The area has seen substantial property value appreciation, particularly in recent years, while rent prices have remained relatively stable. These trends, coupled with fluctuations in interest rates, have reshaped the local housing market, potentially affecting affordability and housing choices for residents in this Reading neighborhood.
