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Alexandria: Rising Home Values and Ownership Rates in a Historic Pennsylvania Community
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
Alexandria, located in Pennsylvania, is a small community with a rich history dating back to the 18th century. Over the past decade, the city has experienced notable fluctuations in homeownership rates and housing prices, reflecting broader economic trends and local market dynamics. The homeownership rate in Alexandria has shown a significant upward trend from 2013 to 2022. In 2013, 75% of residential properties were owner-occupied. This percentage steadily increased, reaching a peak of 91% in 2019 before slightly declining to 89% in 2022. This substantial rise in homeownership coincided with changes in average home prices, although specific price data is only available for recent years.
The relationship between federal interest rates and homeownership rates in Alexandria aligns with well-established economic trends. As interest rates remained low from 2013 to 2021, ranging from 0.08% to 1.83%, homeownership rates increased. This correlation supports the notion that lower interest rates generally encourage homeownership by making mortgages more affordable. The sharp rise in interest rates to 5.02% in 2023 and 5.33% in 2024 may impact future homeownership trends.
Conversely, the percentage of renters in Alexandria decreased from 25% in 2013 to 11% in 2022. Despite this decline in the renter population, average rent prices have shown a consistent upward trend. In 2013, the average rent was $597, which increased to $950 by 2022, representing a 59% rise over nine years. This increase in rent prices occurred despite a fluctuating population, which ranged from a high of 1,197 in 2017 to a low of 833 in 2021.
In 2023 and 2024, Alexandria experienced continued growth in average home prices. The average home price in 2023 was $196,288, an increase from $195,310 in 2022. This upward trend continued into 2024, with average home prices reaching $199,556. These price increases occurred alongside rising federal interest rates, which stood at 5.02% in 2023 and 5.33% in 2024.
Looking ahead, predictive models suggest a continued upward trajectory for both average home prices and rent prices in Alexandria over the next five years. Based on recent trends, average home prices could potentially reach around $215,000 by 2029, while average rent prices might approach $1,100 per month. However, these projections are subject to various economic factors and local market conditions.
In summary, Alexandria has witnessed a substantial increase in homeownership rates over the past decade, accompanied by rising home and rent prices. The inverse relationship between homeownership and rental rates, coupled with the steady increase in housing costs, suggests a strong local housing market. The recent uptick in federal interest rates may influence future homeownership trends, potentially slowing the rate of increase or leading to a slight decline in the coming years.
