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Homer City, PA: Rising Home Values Amidst Stable Ownership in a Resilient Market
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Homer City, located in Pennsylvania, is a small community that has experienced notable demographic shifts and housing market changes over the past decade. The town has seen fluctuations in homeownership rates and significant increases in both average home prices and average rent prices, reflecting broader economic trends and local market dynamics.
The homeownership rate in Homer City has remained relatively stable, with slight fluctuations between 2013 and 2022. In 2013, the homeownership rate stood at 72%, and by 2022, it had decreased slightly to 68%. During this period, average home prices showed a steady upward trend. From 2020 to 2022, average home prices increased from $101,345 to $116,509, representing a 15% increase over just two years. This rise in home prices, despite a slight decrease in homeownership, suggests that while fewer residents own homes, property values are appreciating.
Federal interest rates have played a role in shaping homeownership trends in Homer City. The period from 2013 to 2020 saw historically low interest rates, ranging from 0.09% to 0.38%. These low rates typically encourage homeownership by making mortgages more affordable. However, the homeownership rate in Homer City remained relatively stable during this time, suggesting that other local factors may have influenced housing decisions.
The rental market in Homer City has shown interesting trends. The percentage of renters increased slightly from 28% in 2013 to 32% in 2022. Correspondingly, average rent prices have risen significantly. In 2013, the average rent was $504, and by 2022, it had increased to $642, representing a 27% increase over nine years. This rise in rent prices outpaced the growth in the renter population, indicating increased demand for rental properties or overall market appreciation.
In 2023 and 2024, Homer City's housing market continued to evolve. The average home price in 2023 reached $122,412, and in 2024, it further increased to $130,070. This represents a substantial 11.6% increase from 2022 to 2024. Concurrently, federal interest rates rose dramatically, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates could potentially impact future homeownership rates and housing affordability in the borough.
Looking ahead, predictive models suggest that Homer City may continue to see growth in both home prices and rent prices over the next five years. Average home prices are projected to increase by approximately 3-5% annually, potentially reaching around $150,000 by 2029. Average rent prices are expected to follow a similar trajectory, with potential increases of 2-4% per year, possibly reaching $750 by 2029.
In summary, Homer City has experienced a gradual increase in average home prices and a more substantial rise in average rent prices over the past decade. While homeownership rates have slightly decreased, the overall housing market has shown resilience and growth. The recent sharp increase in interest rates, combined with rising home prices, may present challenges for potential homebuyers in the coming years. However, the steady appreciation of property values suggests a robust local housing market that continues to attract both homeowners and renters.
