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Clarence, Pennsylvania: Rising Home Values and Stable Ownership in a Tight-Knit Community
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
Clarence, Pennsylvania, is a small community with a population that has fluctuated around 1,500 residents over the past decade. This tight-knit area is characterized by a strong preference for homeownership, with consistently high owner-occupancy rates. The trends in average home prices and average rent prices have shown steady increases, reflecting the area's desirability and economic stability.
The homeownership rate in Clarence has remained remarkably stable, hovering around 90-93% between 2013 and 2022. This high rate of ownership coincides with a consistent upward trend in average home prices. In 2013, the average home price was $116,833, which steadily increased to $179,885 by 2022, representing a 54% increase over nine years. The stability in homeownership rates despite rising prices suggests a strong local economy and a community committed to long-term residency.
Federal interest rates have played a significant role in maintaining high homeownership rates in Clarence. From 2013 to 2020, interest rates remained historically low, ranging from 0.09% to 2.16%. These low rates likely contributed to the sustained high levels of homeownership by making mortgages more affordable. Even as average home prices increased, the low interest rates helped offset the impact on monthly payments, allowing residents to continue purchasing homes.
The rental market in Clarence has remained relatively small, with the percentage of renters fluctuating between 7% and 10% from 2013 to 2022. Average rent prices have shown some volatility during this period. In 2013, the average rent was $767, which peaked at $831 in 2014 before declining to $600 in 2016. Since then, average rents have gradually increased, reaching $750 in 2022. The limited rental market and fluctuating prices may reflect the strong preference for homeownership in the community, with rental properties potentially serving as transitional housing for new residents or those not yet ready to purchase a home.
In 2023 and 2024, Clarence experienced a significant jump in average home prices. The average home price rose to $193,728 in 2023 and further increased to $196,558 in 2024. This rapid appreciation coincides with a sharp increase in federal interest rates, which reached 5.02% in 2023 and 5.33% in 2024. Despite these higher interest rates, the continued rise in home prices suggests strong demand and limited housing supply in the area.
Looking ahead, the 5-year forecast for Clarence's housing market indicates continued growth. Based on historical trends and current market conditions, average home prices are projected to increase by approximately 3-5% annually, potentially reaching around $230,000 by 2029. Average rent prices are expected to follow a similar trajectory, with estimated increases of 2-4% per year, potentially reaching $850-$900 by 2029.
In summary, Clarence demonstrates a robust and stable housing market characterized by high homeownership rates and steadily increasing property values. The community has shown resilience to economic fluctuations, maintaining strong ownership preferences even as home prices and interest rates have risen. The limited rental market has experienced some volatility but generally trends upward. As Clarence moves forward, it is likely to continue its pattern of steady growth in both home values and rental prices, reflecting its enduring appeal as a residential community.
