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Harleysville Housing: Resilient Market Amid Rising Home Values
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
Harleysville, Pennsylvania, is a vibrant community located in Montgomery County. Known for its rich history and suburban charm, this Census-Designated Place has experienced notable shifts in homeownership and housing market dynamics over the past decade. The area has generally maintained a strong majority of owner-occupied homes, while average home prices and rent have shown an upward trajectory.
The homeownership rate in Harleysville has experienced a slight decline from 2013 to 2022. In 2013, 71% of housing units were owner-occupied, while by 2022, this figure had decreased to 69%. Conversely, average home prices have shown a consistent upward trend. In 2013, the average home price was $287,977, and by 2022, it had risen significantly to $455,663, representing a 58.2% increase over this period. This inverse relationship suggests that rising home prices may have made homeownership less accessible for some residents, contributing to the slight decline in ownership rates.
Federal interest rates have played a role in shaping homeownership trends in Harleysville. From 2013 to 2016, interest rates remained historically low, ranging from 0.11% to 0.4%. During this period, homeownership rates remained relatively stable, hovering around 70%. However, as interest rates began to rise more sharply from 2017 onwards, reaching 1.68% in 2022, there was a corresponding slight decrease in homeownership rates. This trend aligns with the general principle that higher interest rates can make mortgages less affordable, potentially discouraging homeownership.
The renter population in Harleysville has seen a modest increase, with the percentage of renter-occupied units rising from 29% in 2013 to 31% in 2022. This trend has been accompanied by a significant increase in average rent prices. In 2013, the average rent was $1,039, which climbed to $1,378 by 2022, representing a 32.6% increase. The population of Harleysville has remained relatively stable during this period, with only minor fluctuations, suggesting that the rise in rent prices may be more influenced by market factors than population pressure.
As of 2024, the average home price in Harleysville has reached $501,915, continuing the upward trend observed in previous years. This represents a 10% increase from the 2022 average price of $455,663. Concurrently, federal interest rates have risen to 5.33% in 2024, significantly higher than the 1.68% rate in 2022. This combination of rising home prices and higher interest rates may present challenges for potential homebuyers in the area.
Looking ahead, predictive models suggest that both average home prices and rent prices in Harleysville are likely to continue their upward trajectory over the next five years. Based on historical trends, average home prices could potentially reach around $600,000 by 2029, while average rent prices may approach $1,700 per month. However, these projections are subject to various economic factors and market conditions.
In summary, Harleysville has experienced a slight shift towards renting, with a marginal decrease in homeownership rates over the past decade. This trend has occurred alongside substantial increases in both average home prices and rent prices. The interplay between federal interest rates, housing affordability, and market dynamics continues to shape the residential landscape of this Pennsylvania community. As the area moves forward, balancing housing affordability with market growth will likely remain a key consideration for both residents and policymakers.
