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Home Values and Ownership: Grampian's Shifting Housing Landscape
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
Grampian, Pennsylvania: A Small Community Facing Housing Market Changes Grampian, located in Pennsylvania, is a small community with a population of 2,086 as of 2022. The city has experienced fluctuations in homeownership rates and average rent prices over the past decade, with a general trend towards increased renting and rising rent costs.
The homeownership rate in Grampian has shown a gradual decline from 2013 to 2022. In 2013, the homeownership rate stood at 85%, reaching a peak of 90% in 2018. However, by 2022, it had decreased to 80%. This trend coincides with changes in average rent prices, which have generally increased over the same period. The average rent price rose from $661 in 2013 to $881 in 2022, representing a 33% increase over nine years.
Examining the relationship between federal interest rates and homeownership rates reveals some interesting patterns. From 2013 to 2016, when interest rates were historically low (ranging from 0.11% to 0.40%), homeownership rates in Grampian increased from 85% to 89%. This aligns with the general trend of lower interest rates encouraging homeownership due to more affordable financing options. However, as interest rates began to rise more significantly from 2017 onwards, reaching 1.68% in 2022, the homeownership rate in Grampian started to decline, dropping to 80% by 2022.
The percentage of renters in Grampian has shown an overall increase from 2013 to 2022, rising from 15% to 20%. This trend corresponds with the rise in average rent prices during the same period. The population of Grampian has remained relatively stable, fluctuating between 2,037 and 2,237 residents from 2013 to 2022. The increase in renter percentage, despite stable population figures, suggests a shift in housing preferences or economic conditions favoring renting over homeownership.
In 2023 and 2024, we observe significant changes in the housing market and interest rates. The average home price in Grampian in 2023 was $136,122, which decreased to $120,084 in 2024, representing a 11.8% decline. Concurrently, federal interest rates rose from 5.02% in 2023 to 5.33% in 2024, reaching levels not seen since before the 2008 financial crisis.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in Grampian may continue to face downward pressure in the short term due to high interest rates. However, as the market adjusts, prices could stabilize and potentially see moderate growth. Average rent prices are expected to continue their upward trajectory, albeit at a potentially slower pace, as the rental market responds to shifts in homeownership rates and overall housing demand.
In summary, Grampian has experienced a gradual shift towards renting, with homeownership rates declining and average rent prices increasing over the past decade. The relationship between federal interest rates and homeownership rates has been evident, with lower rates generally corresponding to higher homeownership. The recent sharp increase in interest rates and decrease in average home prices in 2023-2024 mark a significant shift in the local housing market, which may influence future trends in both homeownership and rental markets in the coming years.
