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Monongahela: Rising Home Values and Ownership Trends in a Pennsylvania River Town
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
Monongahela, Pennsylvania, a small urban community with a history dating back to the 18th century, has experienced fluctuating trends in homeownership rates and housing prices over the past decade. From 2013 to 2022, the percentage of owner-occupied homes ranged from 62% to 71%, while average home prices steadily increased from $89,641 to $146,063. Average rent prices also showed variability, starting at $589 in 2013 and reaching $684 by 2022.
The relationship between homeownership rates and average home prices in Monongahela reveals interesting patterns. In 2013, when the average home price was $89,641, the homeownership rate stood at 63%. As home prices increased to $100,044 by 2016, there was a slight dip in homeownership to 62%. However, the trend reversed in subsequent years. By 2021, when average home prices reached $135,980, homeownership rates peaked at 71%. This suggests that despite rising home prices, residents of Monongahela were increasingly able to purchase homes.
Federal interest rates have played a significant role in homeownership trends. From 2013 to 2020, interest rates remained relatively low, ranging from 0.09% to 2.16%. This period coincided with a general increase in homeownership rates in Monongahela, from 63% in 2013 to 67% in 2020. The low interest rates likely made mortgages more affordable, encouraging home purchases. However, as interest rates began to rise sharply in 2022 to 1.68%, there was a slight decrease in homeownership to 67% from the previous year's 71%.
Renter percentages and average rent prices in Monongahela have shown some correlation. In 2013, with 37% of residents renting, the average rent was $589. As the renter percentage decreased to 34% in 2017, average rent increased to $827. However, this trend didn't hold consistently. In 2018, despite an increase in renters to 38%, the average rent dropped to $637. By 2022, with 33% of residents renting, the average rent was $684, showing a more moderate increase compared to earlier years.
In 2023 and 2024, Monongahela has seen continued growth in average home prices. The average home price in 2023 was $147,519, and in 2024 it increased to $155,512. This represents a significant jump from the 2022 average of $146,063. Concurrently, federal interest rates have risen substantially, reaching 5.02% in 2023 and 5.33% in 2024, which may impact future homeownership rates and housing market dynamics.
Looking ahead, based on the trends observed, we can project potential scenarios for the next five years. Average home prices in Monongahela have shown a consistent upward trend, increasing by about 7% annually over the past few years. If this trend continues, we could see average home prices reaching approximately $218,000 by 2029. For rent prices, the trend has been more variable, but assuming a modest annual increase of 3%, average rents could potentially rise to around $793 by 2029.
In summary, Monongahela has demonstrated resilience in its housing market, with increasing homeownership rates despite rising home prices. The interplay between federal interest rates, homeownership, and housing prices has been evident, with low interest rates generally supporting higher homeownership rates. The rental market has shown more variability, with fluctuations in both renter percentages and average rents. As the city moves forward, it will be crucial to monitor how these trends evolve, particularly in light of the recent sharp increases in interest rates and continued growth in home prices.
