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Hawley, Pennsylvania: Rising Home Values and Shifting Ownership Trends in a Small Borough
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
Hawley, located in Pennsylvania, is a small community with a rich history dating back to the 19th century. Over the past decade, this charming borough has experienced significant shifts in its housing market, with notable changes in homeownership rates, average home prices, and average rent prices.
The trend in homeownership in Hawley has shown a gradual decline over the years. In 2013, the homeownership rate stood at 56%, but by 2022, it had decreased to 48%. This decline coincided with a substantial increase in average home prices. In 2013, the average home price was $143,437, which steadily rose to $284,496 by 2022, representing a remarkable 98.3% increase over this period. The most significant jump occurred between 2020 and 2021, when average home prices surged from $191,997 to $247,484, a 28.9% increase in just one year.
Federal interest rates have played a crucial role in shaping homeownership trends in Hawley. The period from 2013 to 2020 saw historically low interest rates, ranging from 0.09% to 0.38%. These low rates initially supported homeownership, but as home prices continued to rise, affordability became a challenge for many potential buyers. The sharp increase in interest rates from 0.08% in 2021 to 1.68% in 2022 likely contributed to the continued decline in homeownership rates, dropping from 50% to 48% during this period.
As homeownership rates decreased, the percentage of renters in Hawley increased correspondingly. The renter-occupied housing rate rose from 44% in 2013 to 52% in 2022. This shift was accompanied by a steady increase in average rent prices. In 2013, the average rent was $819, which grew to $929 by 2022, representing a 13.4% increase over nine years. The most significant annual increase in rent occurred between 2020 and 2021, rising from $937 to $961, a 2.6% jump. These trends suggest that as home prices became less affordable, more residents turned to renting, driving up demand and subsequently, rent prices.
In 2023 and 2024, the housing market in Hawley continued to evolve. The average home price in 2023 reached $291,176, a 2.3% increase from 2022. In 2024, it further rose to $298,872, showing a 2.6% increase from the previous year. Notably, federal interest rates also saw significant increases, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates are likely to impact homeownership trends and affordability in the coming years.
Looking ahead, based on the observed trends and current market conditions, we can project that average home prices in Hawley will continue to rise, albeit at a more moderate pace. Over the next five years, average home prices could potentially reach around $330,000 to $350,000. Average rent prices are also expected to increase, potentially reaching $1,050 to $1,100 per month within the same timeframe. However, these projections are subject to various economic factors and local market conditions.
In summary, Hawley has experienced a significant shift in its housing market over the past decade. The decline in homeownership rates, coupled with substantial increases in average home prices and rent, reflects changing economic conditions and affordability challenges. The recent sharp rise in interest rates is likely to further impact these trends, potentially making homeownership more challenging for some residents while potentially stabilizing home price growth.
