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Fairchance: Homeownership Decline Amid Rising Property 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
Fairchance, Pennsylvania, is a small community located in Fayette County. This charming borough has experienced significant changes in its housing market over the past decade, with notable shifts in homeownership rates, average home prices, and average rent prices.
The homeownership rate in Fairchance has shown a declining trend over the years. In 2013, 70% of housing units were owner-occupied. However, by 2022, this figure had dropped to 54%, representing a substantial 16 percentage point decrease in homeownership. Concurrently, average home prices have generally trended upward. In 2013, the average home price was $96,935, and by 2022, it had risen to $139,434, marking a 43.8% increase over this period. This inverse relationship between homeownership rates and average home prices suggests that rising property values may have made homeownership less attainable for some residents.
Federal interest rates have played a role in shaping homeownership trends in Fairchance. From 2013 to 2020, interest rates remained relatively low, ranging from 0.09% to 2.16%. During this period, homeownership rates remained relatively stable, fluctuating between 65% and 73%. However, as interest rates began to rise more sharply in 2022 (1.68%) and 2023 (5.02%), homeownership rates declined more steeply, reaching 54% in 2022. This trend aligns with the general principle that higher interest rates can make mortgages less affordable, potentially discouraging homeownership.
The renter percentage in Fairchance has increased correspondingly with the decline in homeownership. In 2013, 30% of housing units were renter-occupied, and by 2022, this figure had risen to 46%. Interestingly, despite the increase in renters, average rent prices have shown a slight downward trend. In 2013, the average rent was $694, while in 2022, it decreased to $519, representing a 25.2% reduction. This trend might be influenced by the borough's population fluctuations, which peaked at 2,184 in 2019 before declining to 1,657 in 2022, potentially affecting rental demand and prices.
Looking at the most recent data, the average home price in Fairchance was $130,137 in 2023 and increased to $138,690 in 2024. This represents a 6.6% increase in just one year. The federal interest rate also rose from 5.02% in 2023 to 5.33% in 2024, potentially impacting homebuying decisions in the borough.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in Fairchance will continue to rise moderately, potentially reaching around $150,000 by 2029. Average rent prices, however, may stabilize or show a slight increase, potentially reaching $550-$600 per month by 2029, assuming the population stabilizes or shows modest growth.
In summary, Fairchance has experienced a notable shift from homeownership to renting over the past decade, with homeownership rates declining from 70% to 54% between 2013 and 2022. This trend has occurred alongside a significant increase in average home prices, which rose by 43.8% during the same period. Conversely, average rent prices have decreased, potentially influenced by population fluctuations. The interplay between federal interest rates, housing prices, and homeownership rates underscores the complex dynamics shaping the borough's housing market. As Fairchance moves forward, these trends will likely continue to evolve, shaping the community's housing landscape in the coming years.
