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East Allentown: Rising Home Values and Shifting Ownership Trends in a Dynamic Pennsylvania Neighborhood
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
East Allentown, a vibrant neighborhood in Allentown, Pennsylvania, has experienced significant changes in its real estate market over the past decade. This analysis focuses on the fluctuations in homeownership rates, average home prices, and rental trends from 2013 to 2024, reflecting broader economic shifts and local market conditions. Homeownership rates in East Allentown have shown a general declining trend from 2013 to 2022, with notable fluctuations. In 2013, the homeownership rate was 59%, decreasing to 44% by 2021, before sharply increasing to 57% in 2022. This trend correlates with average home prices in the area, which rose substantially from $64,942 in 2013 to $170,183 in 2022, representing a 162% increase over this period.
The relationship between federal interest rates and homeownership rates in East Allentown demonstrates some correlation. When interest rates were relatively low between 2013 and 2016 (ranging from 0.11% to 0.40%), homeownership rates remained relatively stable around 57-59%. However, as interest rates began to rise from 2017 onwards, reaching 1.83% in 2018, homeownership rates started to decline, dropping to 49% in 2017 and fluctuating in subsequent years.
Renter percentages in East Allentown have generally increased from 2013 to 2022, mirroring the decline in homeownership. The renter percentage rose from 40% in 2013 to 56% in 2021, before decreasing to 43% in 2022. This trend coincides with a steady increase in average rent prices, from $1,061 in 2013 to $1,152 in 2022, representing an 8.6% increase. The population fluctuations, from 3,992 in 2013 to 3,525 in 2022, may have influenced these rental market dynamics.
In 2023 and 2024, average home prices in East Allentown continued their upward trajectory. The average home price reached $186,459 in 2023 and further increased to $201,174 in 2024, representing a significant 18.2% increase from 2022 to 2024. Federal interest rates also rose sharply during this period, reaching 5.02% in 2023 and 5.33% in 2024, which could potentially impact future homeownership rates.
Looking ahead, predictive models suggest that average home prices in East Allentown may continue to rise over the next five years, potentially reaching around $250,000 by 2029. Average rent prices are also expected to increase, possibly surpassing $1,400 per month within the same timeframe. However, these projections are subject to various economic factors and local market conditions.
In summary, East Allentown has experienced a general trend of declining homeownership rates and increasing renter percentages over the past decade, coupled with significant increases in both average home prices and average rent prices. The sharp rise in home prices, particularly in recent years, alongside fluctuating interest rates, has likely contributed to these changing dynamics. As the neighborhood continues to evolve, these trends will play a crucial role in shaping its future real estate landscape.
