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Erie's Rising Home Values: Lakefront City Shows Resilient Housing Market
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Erie, Pennsylvania, a city known for its picturesque lakefront location on Lake Erie, has experienced notable shifts in its housing market over the past decade. The city has seen fluctuations in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market conditions.
The homeownership rate in Erie has shown a variable trend over the years. In 2013, 53% of housing units were owner-occupied. This figure dipped to 48% in 2019, the lowest point in the available data, before rebounding to 55% in 2022. These changes in homeownership rates have occurred alongside a steady increase in average home prices. In 2013, the average home price in Erie was $111,033. By 2022, this figure had risen to $155,637, representing a 40% increase over the nine-year period.
The relationship between federal interest rates and homeownership rates in Erie shows some correlation. The period from 2013 to 2016 saw relatively low federal interest rates (ranging from 0.09% to 0.40%), which coincided with homeownership rates remaining above 50%. However, as interest rates began to rise more significantly from 2017 onwards, homeownership rates showed some fluctuation, dropping to 48% in 2019 before recovering in subsequent years.
Renter percentages in Erie have also fluctuated, inversely mirroring the homeownership trends. The percentage of renter-occupied units peaked at 52% in 2019, coinciding with the lowest homeownership rate. Average rent prices have generally trended upward, albeit with some fluctuations. In 2013, the average rent was $664, which increased to $781 by 2022, representing an 18% rise over the period. This increase in rent prices occurred despite a declining population, which dropped from 100,676 in 2013 to 93,517 in 2022.
Looking at the most recent data, 2023 saw average home prices in Erie reach $166,431, while in 2024, they further increased to $177,318. This represents a significant jump from the 2022 figure of $155,637. Concurrently, federal interest rates have also risen sharply, reaching 5.02% in 2023 and 5.33% in 2024, marking the highest rates in over a decade.
Applying predictive models to forecast 5-year trends, we can anticipate continued growth in both average home prices and rent prices in Erie. Based on the historical data and current trends, average home prices could potentially reach around $200,000 by 2029. Similarly, average rent prices might increase to approximately $850-$900 per month in the same timeframe, assuming the current trajectory continues.
In summary, Erie's housing market has demonstrated resilience and growth despite population decline. The city has seen a recent rebound in homeownership rates, coupled with steady increases in both average home prices and rent prices. The interplay between federal interest rates, homeownership rates, and housing prices highlights the complex dynamics at play in Erie's real estate market. As the city moves forward, these trends suggest a continued strengthening of the housing market, with potential implications for affordability and demographic shifts in the coming years.
