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Arnold, PA: Rising Home Values and Ownership Rates Defy Interest Rate Trends
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
Arnold, located in Pennsylvania, is a small urban area spanning just 0.73 square miles. This compact city has experienced notable shifts in its housing market and population dynamics over the past decade. The city has seen a general trend of increasing homeownership rates and rising average home prices, while average rent prices have fluctuated.
The homeownership rate in Arnold has shown a significant upward trend, particularly in recent years. In 2013, the homeownership rate was 43%, but by 2022, it had increased dramatically to 57%. This 14 percentage point increase coincides with a substantial rise in average home prices. In 2013, the average home price was $41,153, and by 2022, it had climbed to $67,400, representing a 63.8% increase over this period.
The relationship between federal interest rates and homeownership rates in Arnold presents an interesting dynamic. Despite historically low interest rates between 2013 and 2021 (ranging from 0.08% to 1.68%), the homeownership rate initially decreased from 43% in 2013 to 40% in 2017. However, from 2020 onwards, there was a sharp increase in homeownership, rising from 47% to 57% in 2022, even as interest rates began to climb. This suggests that other local factors may have had a stronger influence on homeownership than national interest rates during this period.
The renter percentage in Arnold has inversely mirrored the homeownership trend, decreasing from 57% in 2013 to 43% in 2022. Interestingly, average rent prices have shown overall growth during this period, albeit with some fluctuations. In 2013, the average rent was $706, rising to a peak of $854 in 2021 before slightly decreasing to $790 in 2022. This represents an 11.9% increase in average rent from 2013 to 2022, despite the declining renter population. The city's overall population has been steadily decreasing, from 5,124 in 2013 to 4,778 in 2022, which may have impacted the rental market dynamics.
In 2023 and 2024, Arnold continued to see growth in average home prices. The average home price reached $70,012 in 2023 and further increased to $74,683 in 2024, representing a 10.8% increase over these two years. This growth occurred despite federal interest rates rising to 5.02% in 2023 and 5.33% in 2024, suggesting strong local demand for housing.
Looking ahead, based on the historical data and recent trends, we can project continued growth in average home prices for Arnold over the next five years. If the current trajectory holds, average home prices could potentially reach around $90,000 to $95,000 by 2029. Average rent prices, which have shown more volatility, may stabilize or see modest increases, potentially reaching $850 to $900 per month in the same timeframe.
In summary, Arnold has experienced a significant shift towards homeownership, with a corresponding increase in average home prices. This trend has persisted even in the face of rising interest rates, suggesting strong local factors driving the housing market. The rental market, while seeing overall price increases, has become a smaller segment of the housing landscape. As the city continues to evolve, these housing market dynamics will play a crucial role in shaping its future demographic and economic composition.
