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Allentown, Georgia: Rising Home Values and Strong Ownership in a Small Urban Setting
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
Allentown, Georgia, is a small urban area with a population that has fluctuated around 4,000 residents over the past decade. This community has experienced notable shifts in homeownership rates and housing costs, reflecting broader economic trends and local market dynamics.
The homeownership rate in Allentown has shown resilience, with a slight overall increase from 2013 to 2022. In 2013, 88% of residents owned their homes, which dipped to 78% in 2018 but rebounded to 87% by 2022. This trend generally aligns with changes in average home prices, which have seen significant growth in recent years. The average home price in Allentown rose from $104,706 in 2021 to $124,018 in 2022, representing an 18.4% increase in just one year.
Federal interest rates have played a role in homeownership trends. The period from 2013 to 2021 saw historically low interest rates, ranging from 0.08% to 1.83%, which likely contributed to the high homeownership rates in Allentown. As interest rates began to rise in 2022 to 1.68%, the homeownership rate remained stable at 87%, suggesting a strong local preference for homeownership despite increasing borrowing costs.
Renter percentages in Allentown have inversely mirrored homeownership rates, decreasing from 22% in 2018 to 13% in 2022. Average rent prices have shown volatility, with significant fluctuations over the years. In 2015, the average rent was $807, which dropped to $516 in 2016. It then fell dramatically to $114 in 2018 before rising again to $747 in 2022. These fluctuations may be influenced by changes in housing supply, local economic conditions, and the relatively small rental market in the city.
In 2023 and 2024, Allentown's housing market continued its upward trajectory. The average home price increased to $127,656 in 2023 and further to $130,893 in 2024, representing a steady annual growth rate of about 2.5%. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, potentially impacting affordability for new homebuyers.
Looking ahead, predictive models suggest that average home prices in Allentown may continue to rise over the next five years, potentially reaching around $150,000 by 2029 if current growth rates persist. Rent prices are more challenging to predict due to their historical volatility, but if they stabilize, they could see moderate increases in line with inflation and housing demand.
In summary, Allentown has maintained a high rate of homeownership despite fluctuations in the housing market. The city has experienced substantial growth in average home prices, particularly since 2021. While rent prices have been volatile, they have shown a general upward trend in recent years. The interplay between federal interest rates, local economic conditions, and housing preferences will likely continue to shape Allentown's real estate landscape in the coming years.
