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Houston, PA: Rising Home Values and Ownership in a Small Community
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
Houston, located in Pennsylvania, is a small community with a rich history and a dynamic real estate market. Over the past decade, the city has experienced fluctuations in homeownership rates and housing prices, reflecting broader economic trends and local market conditions.
Homeownership in Houston has shown a general upward trend since 2013. In 2013, the homeownership rate was 58%, which increased to 61% by 2022. This rise in homeownership coincided with a significant increase in average home prices. In 2013, the average home price was $145,511, which steadily rose to $228,512 by 2022, representing a 57% increase over nine years. This trend suggests a growing demand for homeownership in the area, despite rising prices.
The relationship between federal interest rates and homeownership rates in Houston is noteworthy. From 2013 to 2016, when interest rates were historically low (ranging from 0.11% to 0.40%), homeownership rates remained relatively stable around 55-58%. However, as interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, homeownership rates surprisingly continued to increase, reaching 61% in 2022. This trend suggests that other factors, such as local economic conditions or housing market dynamics, may have played a more significant role in driving homeownership than interest rates alone.
Renter percentages in Houston have shown a slight decrease over time, from 42% in 2013 to 39% in 2022. Despite this decrease, average rent prices have generally increased. In 2013, the average rent was $771, which fluctuated over the years but ultimately rose to $788 in 2022. This represents a modest 2.2% increase over nine years. The relatively stable rent prices, despite a decreasing renter population, might indicate a balance between supply and demand in the rental market.
In 2023 and 2024, the housing market in Houston continued to show growth. The average home price in 2023 was $229,062, a slight increase from 2022. In 2024, the average home price further rose to $237,235, indicating a continuing upward trend in the housing market. Notably, federal interest rates also increased significantly during this period, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates could potentially impact future homeownership trends and housing affordability in the area.
Looking ahead, based on historical trends and current market conditions, we can predict that average home prices in Houston will continue to rise over the next five years, albeit at a potentially slower rate due to higher interest rates. Average rent prices are likely to remain relatively stable with modest increases, reflecting the area's consistent demand for rental properties.
In summary, Houston has experienced a notable increase in homeownership rates and average home prices over the past decade, despite fluctuations in interest rates. The rental market has remained relatively stable, with a slight decrease in renter percentages and modest increases in average rent prices. The continued rise in home prices, coupled with increasing interest rates, suggests a robust housing market in the area, although future affordability may become a concern for potential homebuyers.
