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Allison Hill: Shifting Homeownership and Rising Property Values in a Historic Harrisburg Neighborhood
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Allison Hill, a neighborhood in Harrisburg, Pennsylvania, has undergone significant changes in its housing market over the past decade. Known for its diverse community and historic architecture, this area has experienced a dramatic shift in homeownership rates and housing prices, reflecting broader economic trends and changing demographics.
The homeownership rate in Allison Hill has declined substantially, dropping from 51% in 2013 to 28% in 2022. This decrease coincides with a significant increase in average home prices, which rose from $23,999 in 2013 to $73,882 in 2022, representing a 208% increase. The inverse relationship between homeownership rates and home prices suggests that rising property values may have made homeownership less accessible for many residents, transforming Allison Hill into a predominantly renter-occupied neighborhood.
Federal interest rates have played a role in shaping homeownership trends in Allison Hill. From 2013 to 2021, interest rates remained historically low, ranging from 0.08% to 0.40%. This period coincided with the initial increase in home prices, but did not lead to higher homeownership rates, possibly due to other economic factors affecting the neighborhood. The recent sharp rise in interest rates, reaching 5.02% in 2023, may present additional challenges for potential homebuyers in the area.
As homeownership declined, the percentage of renters in Allison Hill increased from 49% in 2013 to 72% in 2022. Average rent prices fluctuated during this period, starting at $930 in 2013, dropping to $740 in 2014, and then gradually increasing to $856 in 2022. The overall trend shows a slight decrease in average rent prices despite the growing renter population, which could be attributed to various factors such as increased housing supply or economic pressures on the local community.
In 2023 and 2024, average home prices in Allison Hill continued to rise, reaching $76,116 in 2023 and $77,199 in 2024. This represents a 4.4% increase from 2022 to 2024, indicating a slowing but still upward trend in property values. Concurrently, federal interest rates rose to 5.02% in 2023 and 5.33% in 2024, potentially impacting home affordability and buyer demand in the neighborhood.
Looking ahead, predictive models suggest that average home prices in Allison Hill may continue to rise over the next five years, albeit at a more moderate pace. Average home prices are expected to reach approximately $85,000 to $90,000 by 2029. Average rent prices are likely to follow a similar trend, potentially increasing to around $950 to $1,000 per month in the same period.
In summary, Allison Hill has transformed from a balanced owner-renter community to a predominantly renter neighborhood over the past decade. This shift has been accompanied by significant increases in average home prices, while rent prices have remained relatively stable. The interplay between rising property values, changing demographics, and economic factors will continue to shape the housing landscape of this Harrisburg neighborhood in the coming years.
