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Home Values and Ownership in Karns City: A Decade of Change
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
Karns City, located in Pennsylvania, is a small community with a population of 1,200 as of 2022. The city has experienced fluctuations in homeownership rates and average rent prices over the past decade, reflecting broader economic trends and local market conditions.
The homeownership rate in Karns City has shown a gradual decline over recent years. In 2013, the homeownership rate stood at 88%, but by 2022, it had decreased to 81%. This 7 percentage point drop indicates a shift in the local housing market dynamics. During this period, average rent prices in the city have shown some volatility. In 2013, the average rent was $755, which decreased to $662 in 2015, before rising again to $739 in 2022. This represents a slight overall decrease of 2.1% in average rent prices from 2013 to 2022.
The relationship between federal interest rates and homeownership rates in Karns City follows a generally established trend. As interest rates remained low from 2013 to 2021, ranging from 0.08% to 0.4%, the homeownership rate remained relatively stable, fluctuating between 83% and 89%. However, as interest rates began to rise significantly in 2022 to 1.68%, the homeownership rate dropped to 81%, its lowest point in the observed period.
The renter population in Karns City has seen a corresponding increase as homeownership rates declined. The percentage of renters rose from 12% in 2013 to 18% in 2022, a 6 percentage point increase. This trend aligns with the fluctuations in average rent prices, which saw an overall modest decrease during the same period. The city's population decreased from 1,330 in 2013 to 1,200 in 2022, which may have influenced the rental market dynamics.
In 2023 and 2024, Karns City experienced significant changes in the housing market. The average home price in 2024 is $172,105, indicating a substantial increase from previous years. This coincides with federal interest rates reaching 5.33% in 2024, up from 5.02% in 2023, reflecting a tighter monetary policy environment.
Looking ahead, predictive models suggest that average home prices in Karns City may continue to rise over the next five years, albeit at a more moderate pace. The recent sharp increase in interest rates could slow down price growth, potentially stabilizing around $180,000 to $190,000 by 2029. Average rent prices are projected to follow a similar trend, potentially reaching $800 to $850 per month in the same timeframe, assuming steady economic conditions and no major local market disruptions.
In summary, Karns City has experienced a gradual shift from homeownership to renting over the past decade, with a notable decrease in the homeownership rate. The recent spike in average home prices and interest rates in 2023-2024 marks a significant change in the local housing market. These trends, combined with the city's decreasing population, suggest a evolving real estate landscape that may continue to favor a mix of homeownership and rental options in the coming years.
