Conneautville's Home Values and Ownership: A Decade of Change in a Small Pennsylvania Borough
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
DATA SOURCE
Conneautville, located in Pennsylvania, is a small community that has experienced significant demographic changes over the past decade. The city has seen fluctuations in its homeownership rates and rental market, reflecting broader economic trends and local dynamics. This analysis will explore the relationship between homeownership, rental patterns, and housing prices in Conneautville.
The homeownership rate in Conneautville has shown a general upward trend from 2013 to 2022, with some fluctuations. In 2013, the homeownership rate was 76%, which increased to 82% by 2017. However, there was a slight decline to 79% by 2022. This overall increase in homeownership coincided with changes in average rent prices. The average rent in Conneautville rose from $658 in 2013 to $824 in 2022, representing a 25% increase over this period.
Federal interest rates play a crucial role in homeownership trends. From 2013 to 2016, interest rates remained low, hovering around 0.1% to 0.4%. This period coincided with the increase in homeownership rates in Conneautville from 76% to 82%. As interest rates began to rise more significantly from 2017 onwards, reaching 1.68% in 2022, the homeownership rate stabilized around 79-81%. This trend aligns with the general principle that lower interest rates tend to encourage homeownership due to more affordable financing options.
The rental market in Conneautville has shown inverse trends to homeownership. The percentage of renters decreased from 23% in 2013 to 18% in 2017, before slightly increasing to 21% by 2022. Despite this fluctuation in the renter population, average rent prices have consistently increased. The most significant jump occurred between 2020 and 2022, with average rent rising from $766 to $824, a 7.6% increase in just two years. This trend suggests that despite a relatively stable renter population, demand for rental properties has remained strong, possibly due to limited housing supply or improving local economic conditions.
In 2023 and 2024, Conneautville saw a significant shift in its housing market. The average home price in 2023 was $170,695, which decreased to $165,908 in 2024, representing a 2.8% decline. This occurred alongside a sharp increase in federal interest rates, which rose to 5.02% in 2023 and further to 5.33% in 2024. These higher interest rates likely contributed to the cooling of home prices, as higher borrowing costs typically reduce buyer demand.
Looking ahead, based on recent trends and current economic conditions, we can forecast the following for Conneautville over the next five years: Average home prices are likely to stabilize and potentially see modest growth as the market adjusts to higher interest rates. We might expect prices to reach around $175,000 by 2029. Average rent prices are predicted to continue their upward trajectory, potentially reaching $900-$950 per month by 2029, driven by ongoing demand for rental properties and overall inflation. The homeownership rate may slightly decrease or remain stable around 78-80% due to higher interest rates making home purchases less affordable for some residents.
In summary, Conneautville has experienced a complex interplay between homeownership rates, rental markets, and housing prices. The city has maintained a high rate of homeownership despite rising home prices and fluctuating interest rates. The rental market, while smaller, has seen consistent increases in average rents. The recent cooling of home prices in 2024, coupled with higher interest rates, marks a new phase in the local housing market that will likely shape trends in the coming years.
