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Alton Park: Rising Home Values and Shifting Ownership in an Allentown Neighborhood
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
Alton Park, a neighborhood in Allentown, Pennsylvania, has experienced significant demographic and housing market shifts over the past decade. This area has seen fluctuations in population density and homeownership rates, accompanied by notable changes in average home prices and rent costs. The neighborhood has maintained a relatively high rate of homeownership throughout the observed period, with average home prices and rent costs showing an upward trend in recent years.
The homeownership rate in Alton Park has seen a slight decline over the years, from 79% in 2013 to 72% in 2022. Despite this decrease, the average home prices have shown a consistent upward trend. In 2013, the average home price was $134,743, which steadily increased to $244,782 by 2022, representing an impressive 81.7% growth over nine years. This inverse relationship between homeownership rates and average home prices suggests that while fewer residents are becoming homeowners, property values in the area are appreciating significantly.
Federal interest rates have played a role in shaping homeownership trends in Alton Park. From 2013 to 2015, when interest rates were extremely low (0.11% to 0.13%), homeownership rates remained stable at around 78-79%. However, as interest rates began to rise from 2016 onwards, reaching 1.68% in 2022, homeownership rates declined to 72%. This trend aligns with the general principle that higher interest rates can make mortgages less affordable, potentially discouraging homeownership.
The renter population in Alton Park has increased from 21% in 2013 to 28% in 2022. Concurrently, average rent prices have risen substantially. In 2013, the average rent was $985, which increased to $1,445 by 2022, marking a 46.7% increase. This trend suggests a growing demand for rental properties in the area, possibly driven by the decreasing affordability of homeownership. The population growth from 3,677 in 2013 to 4,422 in 2022 may have also contributed to the increased demand for rental properties and the subsequent rise in rent prices.
As of 2024, the average home price in Alton Park has reached $275,408, continuing the upward trend observed in previous years. This represents a 12.5% increase from the 2022 average price of $244,782. The federal interest rate in 2024 stands at 5.33%, a significant increase from the 1.68% rate in 2022. This higher interest rate environment may impact future homeownership trends and property values in the neighborhood.
Looking ahead, based on the historical data and current trends, we can project that average home prices in Alton Park will likely continue to rise over the next five years, albeit potentially at a slower rate due to higher interest rates. The average home price could potentially reach around $320,000 to $350,000 by 2029. Average rent prices are also expected to increase, possibly reaching $1,700 to $1,900 per month by 2029, assuming the current growth rate continues.
In summary, Alton Park has experienced a gradual shift from homeownership to renting, coupled with significant increases in both average home prices and rent costs. The neighborhood's property values have shown robust growth, outpacing the decline in homeownership rates. The interplay between federal interest rates, population growth, and housing market dynamics has shaped these trends, creating a complex and evolving real estate landscape in this Allentown neighborhood.
