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Fredonia, Pennsylvania: Rising Home Values and Ownership Trends in a Small Community
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
Fredonia, located in Pennsylvania, is a small community that has experienced notable fluctuations in population and housing dynamics over the past decade. The city's homeownership rates and average rent prices have shown interesting trends, reflecting the changing economic landscape of the area.
The homeownership rate in Fredonia has demonstrated a general upward trend from 2013 to 2022, with some fluctuations. In 2013, the homeownership rate was 69%, which increased to 78% by 2019, marking the highest point in the observed period. However, there was a slight decline to 76% in 2022. This overall increase in homeownership suggests a growing preference for property ownership in the borough.
While we don't have specific average home price data for most of the period, we can infer that the increasing homeownership rates might have been influenced by favorable market conditions or local economic factors. The relationship between federal interest rates and homeownership rates is particularly noteworthy. From 2013 to 2016, when interest rates were extremely low (ranging from 0.11% to 0.40%), the homeownership rate in Fredonia increased from 69% to 62%. This aligns with the general trend of lower interest rates encouraging homeownership due to more affordable financing options.
The rental market in Fredonia has shown interesting trends as well. The percentage of renters decreased from 31% in 2013 to 24% in 2022. Despite this decrease in the renter population, average rent prices have generally increased over the same period. In 2013, the average rent was $350, which rose to $538 by 2022, representing a 53.7% increase. This upward trend in rent prices, even as the proportion of renters declined, could indicate a tightening rental market or improved quality of available rental properties.
Looking at the most recent data, the average home price in Fredonia for 2024 is $175,960. This figure provides a current snapshot of the housing market in the area. Notably, the federal interest rate for 2024 stands at 5.33%, which is significantly higher than the rates seen in the early 2010s. This increase in interest rates could potentially impact homebuying decisions in the near future.
Applying predictive models to forecast 5-year trends, we can anticipate that average home prices in Fredonia may continue to rise moderately, assuming the current economic conditions persist. The average rent prices are also likely to follow an upward trajectory, potentially reaching around $600-$650 by 2029. However, these projections are subject to various factors, including local economic developments, population changes, and broader market trends.
In summary, Fredonia has seen an overall increase in homeownership rates and average rent prices over the past decade. The relationship between low interest rates and increased homeownership was evident in the early to mid-2010s. The recent rise in interest rates and the current average home price of $175,960 set the stage for potential shifts in the housing market. As we look ahead, both the ownership and rental markets in Fredonia are poised for continued evolution, with moderate growth expected in both home values and rent prices.
