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Altoona's Housing Market: Rising Home Values Amidst Shifting Ownership Trends
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Altoona, a city in Pennsylvania, has experienced notable shifts in its housing market over the past decade. Located in Blair County, Altoona is known for its rich railroad history and as the home of the famous Horseshoe Curve. The city has seen a gradual decline in homeownership rates, coupled with fluctuating average home prices and increasing average rent prices.
From 2013 to 2022, Altoona experienced a slight decrease in homeownership rates, dropping from 66% to 65%. During this same period, average home prices showed a steady upward trend. In 2013, the average home price was $97,246, which increased to $135,109 by 2022, representing a 39% rise over nine years. This inverse relationship between homeownership rates and average home prices suggests that rising property values may have made homeownership less attainable for some residents.
Federal interest rates have played a significant role in shaping homeownership trends in Altoona. From 2013 to 2016, when interest rates were historically low (ranging from 0.11% to 0.40%), homeownership rates remained relatively stable at around 65-66%. However, as interest rates began to rise more sharply from 2017 onwards, reaching 1.68% by 2022, homeownership rates experienced a slight decline to 65%. This trend aligns with the general principle that lower interest rates tend to encourage homeownership due to more affordable financing options.
The percentage of renters in Altoona increased from 33% in 2013 to 35% in 2022. Concurrently, average rent prices rose from $651 in 2013 to $747 in 2022, a 14.7% increase. This upward trend in both renter percentages and average rent prices suggests a growing demand for rental properties in the city. The population of Altoona decreased slightly from 46,066 in 2013 to 44,003 in 2022, which may have contributed to the shifting balance between homeowners and renters.
In 2023 and 2024, Altoona's housing market continued to evolve. The average home price in 2023 was $135,572, showing a slight increase from 2022. In 2024, the average home price further rose to $138,118. Notably, federal interest rates also increased significantly during this period, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homeownership trends in the city.
Looking ahead, predictive models suggest that Altoona's housing market will likely continue its upward trajectory. Average home prices are projected to increase by approximately 2-3% annually over the next five years, potentially reaching around $155,000 by 2029. Average rent prices are also expected to rise, albeit at a slower rate of about 1-2% per year, potentially reaching close to $800 by 2029.
In summary, Altoona's housing market has demonstrated a clear trend of rising property values and rent prices over the past decade, accompanied by a slight shift from homeownership to renting. The interplay between federal interest rates, average home prices, and rental demand has shaped these trends. As the city moves forward, it appears poised for continued growth in both the homeownership and rental sectors, with property values and rent prices likely to maintain their upward trajectory.
