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Jersey Shore: Rising Home Values and Ownership Rates Amidst Rental Market Volatility
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
Jersey Shore, located in Pennsylvania, is a small community with a population of 4,160 as of 2022. Over the past decade, this borough has experienced significant changes in homeownership rates and housing prices, reflecting broader economic trends and local dynamics. The homeownership rate in Jersey Shore has shown a remarkable upward trend. In 2013, the homeownership rate stood at 52%, but by 2022, it had surged to 78%, representing a substantial increase of 26 percentage points over nine years. This significant rise in homeownership coincided with a steady increase in average home prices. In 2013, the average home price was $131,829, and it rose to $196,069 by 2022, marking a 48.7% increase over the period. The relationship between federal interest rates and homeownership rates in Jersey Shore presents an interesting case. Despite fluctuations in federal interest rates, the homeownership rate in the borough continued to climb. For instance, when interest rates were at historic lows between 2020 and 2021 (0.38% and 0.08% respectively), homeownership rates rose from 65% to 74%. This trend continued into 2022, with homeownership reaching 78% even as interest rates increased to 1.68%, suggesting that local factors may have played a significant role in driving homeownership in the borough.
Conversely, the percentage of renters in Jersey Shore has decreased substantially over the years. In 2013, renters made up 48% of the population, but by 2022, this figure had dropped to just 22%. Interestingly, despite this decrease in the renter population, average rent prices showed some volatility. The average rent peaked at $865 in 2017 before declining to $735 in 2022, a 15% decrease over five years. This decline in rent prices, coupled with the decreasing renter population, suggests a potential oversupply of rental properties in the area.
Looking at the most recent data, the average home price in Jersey Shore continued its upward trajectory, reaching $203,087 in 2023 and $210,561 in 2024. This represents a 7.4% increase from 2022 to 2024. Concurrently, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024, which could potentially impact future homeownership trends in the borough.
Applying predictive models to forecast 5-year trends, it is anticipated that average home prices in Jersey Shore will continue to rise, albeit at a more moderate pace. By 2029, average home prices could reach approximately $240,000 to $250,000, assuming current economic conditions persist. For rent prices, the forecast suggests a potential stabilization or slight increase, with average rents possibly reaching $800 to $850 by 2029.
In summary, Jersey Shore has experienced a significant shift towards homeownership over the past decade, with a corresponding increase in average home prices. This trend has persisted despite fluctuations in federal interest rates, indicating strong local demand for homeownership. Conversely, the renter population has decreased, accompanied by a recent decline in average rent prices. As the community continues to evolve, these housing trends will likely play a crucial role in shaping the borough's future demographic and economic landscape.
