Loading Content...
Lewisberry: Rising Home Values and Ownership Rates Amidst Changing Interest Rates
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Lewisberry, located in Pennsylvania, is a small community that has experienced notable shifts in its housing market over the past decade. The city has seen fluctuations in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market dynamics.
From 2013 to 2022, Lewisberry witnessed a slight increase in homeownership rates, rising from 78% to 82%. This trend coincided with a substantial growth in average home prices, which surged from $211,049 in 2013 to $321,147 in 2022, representing a 52% increase over the period. The relationship between homeownership rates and average home prices appears to be positive, with both metrics generally trending upward despite some year-to-year fluctuations.
The federal interest rates have played a significant role in shaping homeownership trends in Lewisberry. The period from 2013 to 2016 saw historically low interest rates, hovering around 0.1% to 0.4%. During this time, homeownership rates remained relatively stable, ranging from 65% to 71%. As interest rates began to rise in 2017, reaching 1.83% by 2018, there was a brief dip in homeownership to 65% in 2017. However, the trend reversed, and homeownership rates increased to 82% by 2022, despite interest rates climbing to 1.68% that year.
Renter percentages in Lewisberry have shown an inverse relationship to homeownership rates, naturally decreasing from 22% in 2013 to 18% in 2022. Interestingly, average rent prices have demonstrated a general upward trend despite the declining renter population. Average rent increased from $881 in 2013 to $995 in 2022, with some fluctuations in between. The highest average rent was recorded in 2021 at $1,075, coinciding with a period of low interest rates and increasing home prices, which may have pushed some potential buyers into the rental market temporarily.
In 2023 and 2024, Lewisberry continued to see growth in its housing market. The average home price reached $336,484 in 2023 and further increased to $348,681 in 2024. This represents a 8.6% increase from 2022 to 2024. Concurrently, federal interest rates rose significantly, reaching 5.02% in 2023 and 5.33% in 2024, potentially impacting homebuying decisions.
Looking ahead, predictive models suggest that average home prices in Lewisberry are likely to continue their upward trajectory over the next five years, albeit at a potentially slower pace due to higher interest rates. Average rent prices are also expected to increase moderately, reflecting the overall housing market trends and potential shifts in demand between owning and renting.
In summary, Lewisberry has experienced a notable increase in homeownership rates and average home prices over the past decade, with a corresponding decrease in renter percentages. The interplay between federal interest rates, home prices, and rent prices has shaped the local housing market dynamics. The recent spike in interest rates, coupled with consistently rising home prices, may lead to more nuanced trends in homeownership and rental markets in the coming years.
