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Ashley, PA: Rising Home Values Amidst Declining Ownership
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
Ashley, located in Pennsylvania, is a small community with a population of 2,612 as of 2022. The city has experienced interesting shifts in homeownership rates and housing prices over the past decade, reflecting broader economic trends and local dynamics. The homeownership rate in Ashley has shown a general decline from 2013 to 2022. In 2013, 71% of residents were homeowners, which increased to a peak of 77% in 2016. However, by 2022, this figure had dropped to 66%. This downward trend in homeownership coincides with a significant increase in average home prices. In 2013, the average home price was $68,160, and it rose steadily to reach $110,001 by 2022, representing a 61.4% increase over this period.
The relationship between federal interest rates and homeownership rates in Ashley shows some correlation. From 2013 to 2016, when interest rates were at historic lows (0.11% to 0.4%), homeownership rates increased from 71% to 77%. As interest rates began to rise more significantly from 2017 onwards, reaching 1.68% in 2022, homeownership rates declined to 66%. This trend aligns with the general principle that lower interest rates tend to encourage homeownership due to more affordable financing options.
Renter percentages in Ashley have generally increased as homeownership rates declined. In 2013, 29% of residents were renters, and this figure rose to 34% by 2022. Interestingly, average rent prices have shown volatility over this period. In 2013, the average rent was $693, which decreased to $571 in 2018 before rising sharply to $907 in 2022. This represents a 30.9% increase in average rent from 2013 to 2022, despite some fluctuations.
Looking at the most recent data, the average home price in Ashley continued its upward trajectory, reaching $122,715 in 2023 and $130,735 in 2024. This represents an 18.8% increase from 2022 to 2024. Simultaneously, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024, which may impact future homeownership rates and housing affordability in the area.
Applying predictive models to forecast 5-year trends, we can anticipate continued growth in average home prices in Ashley. Based on the historical data and current trends, average home prices could potentially reach around $160,000 to $170,000 by 2029. For rent prices, the trend suggests a continued increase, potentially reaching an average of $1,100 to $1,200 per month by 2029. However, these projections assume relatively stable economic conditions and do not account for potential major economic shifts or local policy changes.
In summary, Ashley has experienced a decline in homeownership rates coupled with significant increases in both average home prices and rent prices over the past decade. The relationship between federal interest rates and homeownership rates is evident, with higher rates correlating with lower ownership percentages. The recent sharp increase in home prices and interest rates may continue to shape the housing market in Ashley, potentially affecting affordability and homeownership trends in the coming years.
