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Home Values and Ownership in Houtzdale: A Small Pennsylvania Borough's Housing Market Trends
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
Houtzdale, located in Pennsylvania, is a small community with a population of 833 as of 2022. The town has experienced fluctuations in its homeownership rates and housing market over the past decade, with a general trend towards stability in recent years.
The homeownership rate in Houtzdale has remained relatively stable, hovering around 79-80% from 2013 to 2022. This high rate of homeownership suggests a strong preference for property ownership within the community. Despite this stability, there have been slight variations in the ownership percentage. For instance, it decreased slightly from 80% in 2013 to 78% in 2014, before stabilizing at 79% for several years. Data on average home prices for most of this period is not available, making it challenging to draw direct correlations between homeownership rates and home prices.
Federal interest rates have played a significant role in shaping homeownership trends. From 2013 to 2015, when interest rates were extremely low (0.11% to 0.13%), Houtzdale maintained a high homeownership rate of around 79-80%. This aligns with the general trend that lower interest rates encourage homeownership due to more affordable financing options. As interest rates began to rise gradually from 2016 to 2019 (0.4% to 2.16%), the homeownership rate in Houtzdale remained stable, suggesting other local factors may have contributed to the sustained high levels of homeownership.
The renter population in Houtzdale has consistently represented about 20-22% of the total households from 2013 to 2022. Average rent prices have shown an upward trend during this period. In 2013, the average rent was $550, which increased to $667 by 2022, representing a 21.3% increase over nine years. This rise in rent prices occurred despite fluctuations in the town's population, which decreased from 894 in 2013 to 833 in 2022. The consistent increase in rent prices, even with a declining population, could indicate other factors influencing the rental market, such as limited housing supply or improvements in rental properties.
In 2023 and 2024, Houtzdale experienced significant changes in its housing market. The average home price in 2023 was $114,652, which then decreased to $104,591 in 2024, representing an 8.8% decline. This drop occurred as federal interest rates rose from 5.02% in 2023 to 5.33% in 2024, potentially impacting homebuying affordability and demand.
Looking ahead to the next five years, based on recent trends, we can expect average home prices in Houtzdale to potentially stabilize or show modest growth, assuming economic conditions remain relatively stable. Rent prices are likely to continue their upward trajectory, possibly reaching around $750-$800 per month by 2029 if the current rate of increase persists.
In summary, Houtzdale has maintained a high and stable homeownership rate despite fluctuations in population and increasing rent prices. The recent decrease in average home prices, coupled with rising interest rates, may present new challenges and opportunities for the local housing market in the coming years. The consistent increase in rent prices, even during periods of population decline, suggests a resilient rental market that could continue to see growth in the near future.
