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Cressona: Steady Homeownership Amidst Rising Home Values
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Cressona, a small community in Pennsylvania with a history dating back to the late 19th century, has experienced notable trends in homeownership and property values over the past decade. This analysis examines the fluctuations in homeownership rates, average home prices, and rent prices from 2013 to 2024, reflecting broader economic trends and local market dynamics.
The homeownership rate in Cressona has remained relatively stable, ranging from 70% to 75% between 2013 and 2022. In 2013, the homeownership rate stood at 75%, slightly decreasing to 71% by 2022. During this period, average home prices in the borough showed a significant upward trend. The average home price rose from $84,872 in 2013 to $147,753 in 2022, representing a substantial 74% increase over nine years.
The relationship between federal interest rates and homeownership rates in Cressona aligns with established trends. From 2013 to 2016, when interest rates were at historic lows (0.11% to 0.40%), the homeownership rate remained high, between 70-75%. As interest rates began to rise more significantly from 2017 onwards, reaching 1.68% in 2022, the homeownership rate showed slight fluctuations but generally maintained around 70-71%.
Renter percentages in Cressona have shown minor variations, ranging from 25% to 30% between 2013 and 2022. Average rent prices have steadily increased during this period, rising from $674 in 2013 to $878 in 2022, marking a 30% increase. This upward trend in rent prices occurred despite a decline in population from 1,843 in 2013 to 1,312 in 2022, suggesting that factors such as housing quality improvements or regional economic changes may have influenced rental rates.
In 2023 and 2024, Cressona continued to see growth in average home prices. The average home price reached $149,559 in 2023 and further increased to $160,273 in 2024, representing a 7.2% year-over-year growth. This rise occurred alongside higher federal interest rates, which stood at 5.02% in 2023 and 5.33% in 2024, potentially impacting homebuying decisions in the borough.
Looking ahead, predictive models suggest that average home prices in Cressona may continue their upward trajectory over the next five years, potentially reaching around $180,000 to $190,000 by 2029. Average rent prices are also expected to rise, potentially surpassing $1,000 per month within the same timeframe. However, these projections are subject to various economic factors and local market conditions.
In summary, Cressona has demonstrated resilience in its housing market over the past decade. Despite population fluctuations, the community has maintained a relatively stable homeownership rate while experiencing significant growth in both average home prices and rent prices. The interplay between federal interest rates, local economic conditions, and housing market dynamics will continue to shape the borough's real estate landscape in the coming years.
