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Jamestown, PA: Home Values and Ownership Trends 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
Jamestown, Pennsylvania, is a small community with a population that has fluctuated over the years, reaching 650 residents in 2022. This charming borough has experienced notable shifts in its housing market, with changing homeownership rates and evolving rent prices reflecting broader economic trends.
The homeownership rate in Jamestown has shown a general decline over the past decade. In 2013, 68% of housing units were owner-occupied, which increased to a peak of 77% in 2016 and 2017. However, this trend reversed in subsequent years, with the homeownership rate dropping to 61% by 2022. This decline in homeownership coincided with a period of rising average rent prices. The average rent in Jamestown increased from $600 in 2013 to $822 in 2022, representing a significant 37% increase over nine years.
The relationship between federal interest rates and homeownership rates in Jamestown aligns with well-established economic trends. As interest rates remained low from 2013 to 2016, hovering between 0.09% and 0.40%, the homeownership rate in the borough increased from 68% to 77%. This period of low interest rates likely made mortgages more affordable, encouraging homeownership. However, as interest rates began to rise more sharply from 2017 onwards, reaching 1.68% in 2022, the homeownership rate in Jamestown declined to 61%, suggesting that higher borrowing costs may have deterred potential homebuyers.
The renter population in Jamestown has shown an inverse relationship to homeownership trends. As the percentage of owner-occupied housing units decreased from 77% in 2017 to 61% in 2022, the proportion of renter-occupied units increased from 23% to 39% during the same period. This shift towards renting coincided with rising average rent prices, which increased from $619 in 2017 to $822 in 2022, a 33% increase in just five years. The growing renter population, combined with limited housing supply, likely contributed to this upward pressure on rent prices.
In 2023 and 2024, Jamestown's housing market experienced significant changes. The average home price in 2024 reached $142,719, while federal interest rates rose to 5.33% in 2024, up from 5.02% in 2023. These higher interest rates may continue to impact homeownership rates and housing affordability in the borough.
Looking ahead, predictive models suggest that average home prices in Jamestown may continue to rise over the next five years, albeit at a more moderate pace due to higher interest rates. Rent prices are also expected to increase, driven by the growing renter population and limited housing supply. However, the rate of increase may slow as affordability concerns become more pressing for renters.
In summary, Jamestown has experienced a shift from homeownership to renting over the past decade, with rising average rent prices and fluctuating homeownership rates. The interplay between federal interest rates, housing affordability, and demographic changes has shaped these trends. As the community moves forward, balancing housing affordability with market demands will be crucial for maintaining a diverse and stable residential landscape.
