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Etna: Home Values Double Amid Ownership Fluctuations
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Etna, a small community in Pennsylvania, has experienced notable shifts in its housing landscape over the past decade. With a population of 3,413 in 2022 and covering just 0.74 square miles, this compact borough has seen interesting trends in homeownership rates, average home prices, and average rent prices.
The homeownership rate in Etna has fluctuated significantly between 2013 and 2022. Starting at 52% in 2013, it peaked at 63% from 2017 to 2019 before declining to 51% in 2022. This trend inversely correlates with average home prices, which have shown a steady increase. In 2013, the average home price was $74,333, rising to $151,385 by 2022, representing a substantial 103.7% increase over this period. The most dramatic rise occurred between 2020 and 2021, with average home prices jumping from $123,672 to $146,728, a 18.6% increase in just one year.
Federal interest rates have played a role in shaping homeownership trends in Etna. The period of low interest rates from 2013 to 2016, ranging from 0.09% to 0.4%, coincided with a gradual increase in homeownership rates. As interest rates began to rise more significantly from 2017 onwards, reaching 1.83% in 2018 and 2.16% in 2019, homeownership rates stabilized at their peak of 63%. However, the sharp increase in interest rates to 1.68% in 2022 corresponded with a decline in homeownership to 51%, suggesting that higher borrowing costs may have impacted affordability for potential buyers.
Renter percentages in Etna have inversely mirrored homeownership rates, ranging from a low of 37% between 2017 and 2019 to a high of 49% in 2022. Average rent prices have shown overall growth, albeit with some fluctuations. In 2013, the average rent was $826, increasing to $1,037 by 2021, a 25.5% rise. However, 2022 saw a notable decrease to $877, possibly reflecting broader economic factors or local market conditions.
Looking at the most recent data, average home prices in Etna slightly decreased to $150,196 in 2023 but are projected to rise again to $152,033 in 2024. This occurs against a backdrop of high federal interest rates, which stood at 5.02% in 2023 and are expected to reach 5.33% in 2024, potentially influencing future homebuying decisions.
Applying predictive models to forecast 5-year trends, we anticipate a continued modest increase in average home prices, potentially reaching around $165,000 by 2029. Average rent prices are expected to follow a similar upward trajectory, possibly exceeding $1,100 per month within the same timeframe. These projections assume relatively stable economic conditions and no major local policy changes.
In summary, Etna has witnessed a complex interplay between homeownership rates, average home prices, and rental markets. The trend of rising home prices, despite recent fluctuations in homeownership rates, suggests a growing attractiveness of the area to homebuyers. However, the recent uptick in federal interest rates may pose challenges for future homeownership growth. The rental market, while showing overall growth, has demonstrated some volatility, indicating a need for close monitoring of local economic factors affecting housing affordability in this Pennsylvania community.
