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Home Values and Ownership in Palmyra, Pennsylvania: A Decade of Steady Growth
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
Palmyra, Pennsylvania, is a small yet vibrant community located in Lebanon County. With a population of 7,783 in 2022 and a land area of 1.92 square miles, this borough offers a blend of suburban charm and historical significance. Over the past decade, Palmyra has experienced notable shifts in homeownership rates and housing market dynamics, reflecting broader economic trends and local developments.
The homeownership rate in Palmyra has fluctuated between 49% and 53% from 2013 to 2022, indicating a relatively balanced mix of owners and renters. Average home prices have shown a consistent upward trend, rising from $185,281 in 2013 to $287,560 in 2022, representing a significant 55% increase over this period. This appreciation in home values has outpaced the changes in homeownership rates, suggesting that while property values have risen, the proportion of homeowners has remained relatively stable.
Examining the relationship between federal interest rates and homeownership rates reveals interesting patterns. In 2013, when interest rates were at a low 0.11%, homeownership stood at 51%. As interest rates gradually increased to 1.83% by 2018, homeownership remained steady at 50%. However, the sharp drop in interest rates to 0.08% in 2021 coincided with a slight decrease in homeownership to 49%, contrary to the typical expectation that lower rates would encourage home buying. This suggests that other local factors may have influenced homeownership decisions in Palmyra during this period.
Renter percentages have mirrored the homeownership trends, ranging from 47% to 51% between 2013 and 2022. Average rent prices have shown overall growth, increasing from $908 in 2013 to $1,045 in 2022, a 15% rise. Notably, there was a significant jump in average rent from $1,009 in 2019 to $1,111 in 2021, possibly reflecting increased housing demand or economic pressures during the pandemic period. The population growth from 7,363 in 2013 to 7,783 in 2022 may have contributed to the upward pressure on both home prices and rents.
Looking at the most recent data, average home prices in Palmyra reached $305,966 in 2023 and further increased to $315,850 in 2024, continuing the strong upward trend. This growth occurred despite the sharp rise in federal interest rates to 5.02% in 2023 and 5.33% in 2024, indicating robust demand in the local housing market even in the face of higher borrowing costs.
Applying predictive models to forecast 5-year trends, we can expect average home prices in Palmyra to continue their upward trajectory, potentially reaching around $360,000 by 2029. Average rent prices are also likely to increase, possibly surpassing $1,200 per month within the same timeframe. However, these projections assume relatively stable economic conditions and continued population growth in the area.
In summary, Palmyra has demonstrated a resilient housing market characterized by steadily increasing property values and a balanced mix of owners and renters. The consistent rise in both home prices and rents, even during periods of fluctuating interest rates, suggests strong local demand for housing. As the community continues to grow, maintaining this balance between affordable rental options and homeownership opportunities will be crucial for Palmyra's continued development and attractiveness to both current and potential residents.
