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Hamilton Park: Rising Home Values and Strong Ownership Culture in Allentown's Vibrant Neighborhood
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
Hamilton Park, a vibrant neighborhood in Allentown, Pennsylvania, has experienced significant changes in its housing market over the past decade. This area, known for its strong community spirit and attractive residential zones, has demonstrated resilience in its real estate sector with consistently high homeownership rates and steadily increasing property values. The homeownership rate in Hamilton Park has remained relatively stable, with minor fluctuations. In 2013, the neighborhood boasted a high 90% homeownership rate, which slightly decreased to 83% by 2022. This minor shift indicates a small trend towards renting. Concurrently, average home prices in the area have shown a remarkable upward trajectory. The average home price rose from $154,735 in 2013 to $274,986 in 2022, representing a substantial 77.7% growth over nine years. The relationship between federal interest rates and homeownership rates in Hamilton Park shows some correlation. When interest rates were at historic lows between 2013 and 2016, ranging from 0.11% to 0.40%, homeownership rates remained high, between 83% and 90%. This aligns with the general trend of lower interest rates encouraging homeownership due to more affordable financing options. However, despite interest rates rising to 1.68% in 2022, the homeownership rate in Hamilton Park remained stable at 83%, suggesting other local factors may also influence homeownership decisions.
Renter percentages in Hamilton Park have shown a slight increase over the years, rising from 10% in 2013 to 17% in 2022. This trend coincides with a significant increase in average rent prices. The average rent rose from $1,070 in 2013 to $1,745 in 2022, marking a 63.1% increase. The population of Hamilton Park has fluctuated during this period, peaking at 6,069 in 2016 before declining to 5,152 in 2022. This population change may have influenced the rental market, potentially contributing to the rise in average rent prices despite the modest increase in renter percentage. In 2023 and 2024, Hamilton Park continued to see growth in average home prices. The average home price reached $290,746 in 2023 and further increased to $308,133 in 2024. This represents a 12.1% increase from 2022 to 2024. Notably, federal interest rates also rose significantly during this period, reaching 5.02% in 2023 and 5.33% in 2024. Despite these higher interest rates, home prices in Hamilton Park continued to appreciate, suggesting strong local demand or other favorable market conditions. Looking ahead, based on the observed trends, we can forecast continued growth in both average home prices and rent prices over the next five years. Average home prices could potentially reach around $350,000 to $375,000 by 2029, assuming a similar growth rate. Average rent prices might increase to approximately $2,000 to $2,200 per month in the same timeframe. However, these projections may be influenced by various factors including economic conditions, local development, and broader housing market trends. In summary, Hamilton Park has demonstrated resilience in its housing market, with consistently high homeownership rates and steadily increasing property values. The neighborhood has experienced significant growth in both average home prices and rent prices over the past decade, outpacing many other areas. Despite rising interest rates, the local real estate market appears robust, suggesting Hamilton Park remains an attractive area for both homeowners and investors. The slight increase in renter percentage, coupled with rising rent prices, indicates a growing demand for rental properties in the area as well.
