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Laceyville, PA: Shifting Home Values and Ownership in a Small Borough
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
Laceyville, located in Pennsylvania, has experienced significant shifts in its housing market over the past decade. This small community has seen notable changes in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local dynamics.
The homeownership rate in Laceyville has shown a steady decline from 2013 to 2022. In 2013, 70% of housing units were owner-occupied, but by 2022, this figure had dropped to 56%. This downward trend in homeownership coincided with an increase in average home prices. The average home price in 2022 was $201,733, indicating a relatively high value for the area.
Federal interest rates play a significant role in homeownership trends. From 2013 to 2016, interest rates remained very low, hovering around 0.1% to 0.4%. During this period, homeownership in Laceyville remained relatively stable, ranging from 68% to 70%. However, as interest rates began to rise more significantly from 2017 onwards, reaching 1.68% in 2022, we see a corresponding decline in homeownership rates, dropping to 56% by 2022. This aligns with the general trend of lower interest rates encouraging homeownership due to more affordable financing options.
As homeownership decreased, the percentage of renters in Laceyville increased from 30% in 2013 to 44% in 2022. This shift towards renting coincided with a substantial increase in average rent prices. In 2013, the average rent was $657, but by 2022, it had risen to $929, representing a 41% increase over nine years. This rise in rent prices outpaced the growth in the renter population, suggesting increased demand for rental properties or other market factors influencing prices.
Looking at the most recent data from 2023 and 2024, we see a slight decrease in average home prices. In 2023, the average home price in Laceyville was $196,989, and in 2024 it further decreased to $189,718. This represents a 6% decrease from 2022 to 2024. Interestingly, this price decline occurs despite rising federal interest rates, which reached 5.02% in 2023 and 5.33% in 2024.
Applying predictive models to forecast 5-year trends, we can anticipate that average home prices in Laceyville may continue to experience moderate declines or stabilization, given the recent downward trend and high interest rates. Average rent prices, however, are likely to continue their upward trajectory, albeit at a potentially slower rate, as the renter population grows and housing demand remains strong.
In summary, Laceyville has experienced a significant shift from homeownership to renting over the past decade, with a 14 percentage point decrease in owner-occupied housing units. This trend has been accompanied by rising average rent prices and fluctuating home values. The interplay between federal interest rates, housing prices, and occupancy trends highlights the complex dynamics shaping Laceyville's housing market, with recent data suggesting potential stabilization in home prices amidst a continuing trend towards renting.
