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Millheim: Rising Home Values Amidst Market Fluctuations
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Millheim, a small community in Pennsylvania, has experienced significant changes in its housing landscape over the past decade. This quaint borough has seen fluctuations in its ownership percentages, average home prices, and average rent prices, reflecting broader economic trends and local market dynamics. The homeownership rate in Millheim has shown a notable trend, with some fluctuations over the years. In 2013, the homeownership rate stood at 85%. It experienced a decline to 74% in 2019, before rebounding to 82% in 2022. This upward trend in recent years coincides with a steady increase in average home prices. In 2013, the average home price was $127,838, which rose consistently to reach $202,332 by 2022, representing a substantial 58% increase over this period.
The relationship between federal interest rates and homeownership rates in Millheim shows some correlation. For instance, the period from 2013 to 2016 saw relatively low federal interest rates (ranging from 0.09% to 0.40%), which coincided with high homeownership rates of 79% to 85%. As interest rates began to rise more significantly from 2017 onwards, there was a slight downward trend in homeownership, reaching a low of 74% in 2019 when the federal interest rate was 2.16%. However, the subsequent drop in interest rates in 2020 and 2021 (to 0.38% and 0.08% respectively) saw a resurgence in homeownership, climbing back to 82% by 2022.
Renter percentages and average rent prices in Millheim have also shown interesting trends. The renter-occupied housing percentage increased from 15% in 2013 to a peak of 26% in 2019, before declining to 18% in 2022. Average rent prices have generally increased over this period, rising from $772 in 2013 to $837 in 2022, a 8.4% increase. Notably, there was a period of decline in average rent from 2014 to 2018, dropping from $797 to $743, before rising again in subsequent years.
In 2023 and 2024, Millheim continued to see growth in average home prices. The average home price reached $215,148 in 2023 and further increased to $221,729 in 2024, representing a 9.6% increase from 2022 to 2024. This growth occurred despite a significant rise in federal interest rates, which stood at 5.02% in 2023 and 5.33% in 2024.
Looking ahead, based on the historical trends and current market conditions, we can forecast continued growth in both average home prices and rent prices over the next five years. Average home prices are predicted to maintain their upward trajectory, potentially reaching around $250,000 by 2029. Average rent prices are also expected to increase, potentially surpassing $900 by 2029, assuming the current trends continue.
In summary, Millheim has demonstrated resilience in its housing market, with a strong rebound in homeownership rates and consistent growth in average home prices. The interplay between federal interest rates, homeownership rates, and housing prices provides valuable insights into the local real estate dynamics. The recent surge in home prices, despite rising interest rates, suggests a robust demand for housing in the area, which is likely to continue shaping the borough's real estate landscape in the coming years.
