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East Vandergrift's Rising Home Values: A Resilient Housing Market in Pennsylvania
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
East Vandergrift, located in Pennsylvania, is a small community with a population that has fluctuated over the years, peaking at 914 residents in 2016 and declining to 704 by 2022. This borough has experienced significant changes in homeownership rates and housing costs over the past decade, reflecting broader economic trends and local market dynamics.
The homeownership rate in East Vandergrift has shown considerable variability from 2013 to 2022. In 2013, the homeownership rate stood at 67%, reaching its peak of 73% in 2016. However, there was a sharp decline to 54% in 2019, followed by a recovery to 65% by 2022. Despite the lack of average home price data for most years, we can infer that these fluctuations in homeownership rates likely corresponded with changes in home affordability and economic conditions.
Federal interest rates have played a crucial role in shaping homeownership trends. From 2013 to 2016, when homeownership rates increased from 67% to 73%, interest rates remained relatively low, ranging from 0.11% to 0.40%. This period of low interest rates likely contributed to more favorable borrowing conditions, encouraging homeownership. The subsequent decline in homeownership to 54% in 2019 coincided with rising interest rates, which reached 2.16% that year. As interest rates dropped again in 2020 and 2021, homeownership rates rebounded to 65%.
Renter percentages in East Vandergrift have inversely mirrored homeownership rates, ranging from a low of 27% in 2016 to a high of 45% in 2019. Average rent prices have shown an overall upward trend, increasing from $700 in 2013 to $859 in 2022, representing a 22.7% increase over this period. Notably, there was a temporary dip in average rent to $589 in 2015, but prices quickly recovered and continued to rise. The increase in rent prices, coupled with fluctuations in the renter population, suggests a complex interplay between housing demand and affordability in the borough.
In 2023 and 2024, East Vandergrift saw a significant increase in average home prices. The average home price in 2023 was $67,186, rising to $68,621 in 2024, marking a 2.1% increase. This uptick in home values occurred despite high federal interest rates of 5.02% in 2023 and 5.33% in 2024, indicating a robust local housing market that has maintained growth even in a high-interest rate environment.
Looking ahead, predictive models suggest that average home prices in East Vandergrift are likely to continue their upward trajectory over the next five years, albeit at a potentially slower pace due to the current high interest rates. Average rent prices are also expected to increase, driven by ongoing demand for rental properties and the overall trend of rising housing costs. However, the rate of increase may moderate if homeownership becomes more attainable, potentially leading to a more balanced housing market.
In summary, East Vandergrift has experienced significant fluctuations in homeownership rates, closely tied to changes in federal interest rates. The recent increase in average home prices, despite high interest rates, indicates a resilient local housing market. Moving forward, the borough is likely to see continued growth in both home values and rental prices, with the potential for more stable homeownership rates as the market adjusts to current economic conditions.
