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Homeownership and Rising Values in Girardville: A Small Pennsylvania Borough's Housing Market Dynamics
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Girardville, located in Pennsylvania, is a small community with a rich history rooted in coal mining. Over the past decade, this quaint town has experienced fluctuations in homeownership rates and housing prices, reflecting broader economic trends and local dynamics.
The homeownership rate in Girardville has remained relatively stable, hovering around 75% from 2013 to 2022. In 2013, 72% of residents owned their homes, which increased to 80% in 2014 and 2015. The rate then settled at 74% from 2019 to 2021, with a slight uptick to 76% in 2022. Concurrently, average home prices have shown a steady upward trend. In 2013, the average home price was $16,978, which increased gradually to $20,872 by 2019. The market then experienced a significant jump, with prices reaching $33,296 in 2022, representing a nearly 96% increase from 2013 to 2022.
The relationship between federal interest rates and homeownership rates in Girardville appears to follow general economic principles. As interest rates remained low from 2013 to 2021, ranging from 0.08% to 0.40%, homeownership rates maintained a relatively high level. The slight dip in homeownership from 80% in 2015 to 74% in 2020 and 2021 occurred despite low interest rates, suggesting other local factors may have influenced this trend.
Renter percentages in Girardville have fluctuated inversely to homeownership rates, ranging from 20% to 28% between 2013 and 2022. Average rent prices have shown an overall declining trend during this period. In 2013, the average rent was $781, which peaked at $792 in 2014 before gradually decreasing to $634 in 2022. This represents a nearly 19% decrease in average rent prices over the decade. The declining rent prices, coupled with a relatively stable renter population, suggest a potential oversupply of rental units or economic challenges in the area.
In 2023, the average home price in Girardville rose to $33,798, continuing the upward trend observed in previous years. This increase occurred despite a significant jump in federal interest rates to 5.02% in 2023. Moving into 2024, the average home price has further increased to $37,747, marking a notable 11.7% rise from the previous year. This growth is particularly striking considering the federal interest rate climbed to 5.33% in 2024, the highest level in over a decade.
Looking ahead, based on the observed trends and current market conditions, it's projected that average home prices in Girardville will continue to rise over the next five years, albeit potentially at a slower rate due to higher interest rates. Average home prices could reach approximately $45,000 to $50,000 by 2029. Conversely, average rent prices are expected to stabilize or potentially see a modest increase, possibly reaching around $700 to $750 per month by 2029, as the rental market adjusts to changing economic conditions and housing demand.
In summary, Girardville has demonstrated resilience in its housing market, with consistently high homeownership rates and steadily increasing home values, particularly in recent years. The divergence between rising home prices and declining rent prices presents an interesting dynamic, potentially reflecting broader economic shifts or changes in local housing preferences. The continued growth in home prices, even in the face of rising interest rates, suggests a strong underlying demand for homeownership in this Pennsylvania borough.
