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Bangor, PA: A Decade of Rising Home Values and Shifting Ownership 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
Bangor, located in Pennsylvania, is a small community with a rich history dating back to its founding in 1875. This borough has experienced significant shifts in its housing market and demographic composition over the past decade. The trends in homeownership, average home prices, and average rent prices reveal a dynamic real estate landscape in this tight-knit community.
The homeownership rate in Bangor has fluctuated considerably between 2013 and 2022. In 2013, 57% of residents owned their homes. This percentage declined to a low of 45% in 2016 before rebounding to 62% in 2022. Concurrently, average home prices have shown a general upward trend. In 2013, the average home price was $162,223. By 2022, this figure had increased to $270,588, representing a substantial 66.8% rise over nine years.
The relationship between federal interest rates and homeownership rates in Bangor shows some correlation. As interest rates remained low from 2013 to 2016, hovering around 0.1%, homeownership rates actually decreased from 57% to 45%. However, as interest rates began to rise from 2016 onwards, reaching 1.68% in 2022, homeownership rates also increased, reaching 62% in 2022. This suggests that other local factors may have played a more significant role in homeownership trends than interest rates alone.
Renter percentages in Bangor have mirrored the inverse of homeownership rates, peaking at 55% in 2016 before declining to 38% in 2022. Average rent prices have shown volatility over this period. In 2013, the average rent was $1,019. It rose to a high of $1,319 in 2018 before decreasing to $1,017 in 2022. This represents a modest overall increase of less than 1% over the nine-year period, despite significant fluctuations in between.
In 2023, the average home price in Bangor reached $281,516, with interest rates at 5.02%. Moving into 2024, the average home price has further increased to $297,053, while interest rates have risen slightly to 5.33%. These figures indicate a continuing upward trend in home values, despite higher borrowing costs.
Looking ahead, predictive models suggest that average home prices in Bangor may continue to rise over the next five years, potentially reaching around $350,000 by 2029. Average rent prices, which have shown more volatility, are projected to stabilize and potentially increase at a moderate rate, possibly reaching $1,200 by 2029. However, these projections are subject to various economic factors and local market conditions.
In summary, Bangor has experienced a resurgence in homeownership rates since 2016, accompanied by significant increases in average home prices. The rental market has shown more stability in pricing despite fluctuations in the percentage of renters. The recent uptick in interest rates has not dampened the growth in home values, suggesting strong underlying demand in the local real estate market. As Bangor continues to evolve, these housing trends will play a crucial role in shaping the community's future demographic and economic landscape.
