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Hellertown, Pennsylvania: Home Values Soar Amid Dynamic Real Estate Market
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Hellertown, located in Pennsylvania, is a small community with a rich history and a population of 6,109 as of 2022. This charming borough has experienced notable shifts in homeownership rates and housing prices over the past decade. The overall trend shows a slight decrease in homeownership, coupled with a significant increase in average home prices and average rent costs.
The homeownership rate in Hellertown has experienced a gradual decline from 71% in 2013 to 69% in 2022. During this same period, average home prices have shown a substantial increase. In 2013, the average home price was $178,787, and by 2022, it had risen to $304,309, representing a remarkable 70% increase over nine years. This inverse relationship between homeownership rates and average home prices suggests that rising property values may be making it more challenging for residents to purchase homes.
Federal interest rates have played a significant role in shaping homeownership trends in Hellertown. From 2013 to 2016, when interest rates remained consistently low (ranging from 0.11% to 0.4%), homeownership rates remained relatively stable at around 70%. However, as interest rates began to rise more sharply from 2017 (1%) to 2019 (2.16%), homeownership rates declined to 65% by 2020. This trend aligns with the general principle that lower interest rates tend to encourage homeownership due to more affordable financing options.
The percentage of renters in Hellertown has increased from 29% in 2013 to 31% in 2022. Correspondingly, average rent prices have also risen, from $1,144 in 2013 to $1,190 in 2022, an increase of about 4%. The rise in both renter percentage and average rent prices could be attributed to the growing population, which increased from 5,881 in 2013 to 6,109 in 2022. This population growth may have increased demand for rental properties, driving up both the number of renters and rental costs.
In 2023 and 2024, Hellertown has continued to see growth in average home prices. The average home price in 2023 was $319,488, and in 2024 it further increased to $335,342. This represents a 5% year-over-year increase from 2023 to 2024. Interestingly, federal interest rates have also risen significantly during this period, reaching 5.02% in 2023 and 5.33% in 2024, which could potentially impact future homeownership rates.
Looking ahead, based on the historical data and current trends, we can forecast the following 5-year trends for Hellertown: 1. Average home prices are likely to continue their upward trajectory, potentially reaching around $400,000 by 2029. 2. Average rent prices may also continue to increase, albeit at a slower rate, possibly reaching $1,300-$1,400 per month by 2029. 3. The homeownership rate may stabilize or slightly decrease further, potentially settling around 65-67% by 2029.
In summary, Hellertown has experienced a notable increase in housing costs over the past decade, with average home prices rising significantly and average rent prices showing a steady increase. While homeownership rates have slightly declined, they remain relatively high at 69%. The interplay between federal interest rates, population growth, and housing market dynamics will continue to shape the borough's real estate landscape in the coming years.
