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Atglen's Housing Market: Rising Home Values and Ownership Rates Defy Interest Rate 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
Atglen, a small community in Pennsylvania, has experienced notable shifts in its housing landscape over the past decade. This quaint borough has seen fluctuations in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market dynamics.
The relationship between homeownership rates and average home prices in Atglen reveals an interesting pattern. In 2013, the homeownership rate stood at 74%, with average home prices at $193,374. As average home prices steadily increased, reaching $238,462 by 2019, the homeownership rate declined to 60%. This inverse relationship suggests that rising home prices may have made homeownership less attainable for some residents. However, from 2020 to 2022, there was a reversal in this trend. Despite a substantial increase in average home prices from $255,027 in 2020 to $330,275 in 2022, the homeownership rate rose from 65% to 78%, indicating a strong desire for homeownership even in the face of higher prices.
Federal interest rates appear to have influenced homeownership rates in Atglen. From 2013 to 2017, when interest rates were historically low (ranging from 0.11% to 1%), the homeownership rate declined from 74% to 57%. This counterintuitive trend might be attributed to other local factors outweighing the effect of low interest rates. However, as interest rates began to rise more significantly from 2018 (1.83%) to 2022 (1.68%), the homeownership rate increased from 59% to 78%, suggesting that residents may have been motivated to purchase homes before rates climbed further.
The trends in renter percentages and average rent prices show a complex relationship. From 2013 to 2017, the percentage of renters increased from 26% to 43%, coinciding with a rise in average rent from $796 to $894. This trend suggests that despite increasing rents, more residents were opting to rent. However, from 2018 to 2022, the renter percentage decreased from 41% to 22%, while average rent continued to rise, reaching $1,042 in 2022. This decline in renters despite rising rents could be attributed to the simultaneous increase in homeownership during this period.
In 2023 and 2024, Atglen saw a continued increase in average home prices, reaching $347,748 in 2023 and $365,220 in 2024. This upward trend occurred despite a significant rise in federal interest rates, which stood at 5.02% in 2023 and 5.33% in 2024. These figures indicate a robust housing market in the borough, with home values appreciating even in the face of higher borrowing costs.
Looking ahead, based on the historical data and current trends, we can project that average home prices in Atglen will likely continue to rise over the next five years, potentially reaching around $425,000 by 2029. Average rent prices may also see an upward trend, potentially surpassing $1,300 per month in the same timeframe. However, these projections assume a continuation of current economic conditions and local market dynamics.
In summary, Atglen has demonstrated resilience in its housing market, with increasing home values and a recent surge in homeownership rates despite rising interest rates. The interplay between homeownership, rental markets, and economic factors has shaped a dynamic housing landscape in this Pennsylvania community, setting the stage for continued evolution in the coming years.
