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Mount Holly Springs: Rising Home Values and Shifting Ownership in a Pennsylvania 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
Mount Holly Springs, located in Pennsylvania, has experienced significant demographic and housing market changes over the past decade. This small community has seen fluctuations in its population, homeownership rates, and housing prices, reflecting broader economic trends and local market dynamics.
The homeownership rate in Mount Holly Springs has shown a notable trend over the years. In 2013, 73% of residents owned their homes. This figure peaked at 80% in 2019 before declining to 68% by 2022. This shift coincides with changes in average home prices. In 2013, the average home price was $162,644, which steadily increased to $239,245 by 2022, representing a 47% increase over nine years. The relationship between homeownership rates and average home prices suggests that as prices rose, particularly sharply from 2020 onwards, homeownership became less attainable for some residents.
Federal interest rates play a crucial role in homeownership trends. From 2013 to 2020, interest rates remained relatively low, ranging from 0.09% to 2.16%. This period coincided with the highest homeownership rates in Mount Holly Springs, peaking at 80% in 2019. However, as interest rates began to rise more sharply in 2022 to 1.68%, we see a corresponding drop in homeownership to 68%. This aligns with the well-established trend that lower interest rates generally encourage homeownership due to more affordable financing options.
Renter percentages in Mount Holly Springs have inversely mirrored homeownership rates, increasing from 20% in 2019 to 32% in 2022. Average rent prices have fluctuated without a clear upward trend. In 2013, the average rent was $786, dropping to a low of $526 in 2017, before rising again to $700 in 2022. These fluctuations in rent prices, coupled with the increasing population (from 4,137 in 2019 to 4,607 in 2022), suggest a complex rental market affected by various factors including housing supply and local economic conditions.
In 2023 and 2024, we see a continuation of the upward trend in average home prices, reaching $253,127 in 2023 and $263,113 in 2024. This represents a 10% increase from 2022 to 2024. Simultaneously, interest rates have risen significantly to 5.02% in 2023 and 5.33% in 2024, potentially impacting affordability and homeownership rates.
Looking ahead, predictive models suggest that average home prices in Mount Holly Springs may continue to rise over the next five years, potentially reaching around $300,000 by 2029 if current trends persist. Rent prices, which have been more volatile, are harder to predict but may stabilize or show modest increases, potentially reaching an average of $750-$800 per month by 2029.
In summary, Mount Holly Springs has experienced a shift from peak homeownership in 2019 to an increasing rental market by 2022, coinciding with rising home prices and interest rates. The community has seen substantial growth in average home values, particularly from 2020 onwards. These trends reflect the dynamic nature of the local housing market and its sensitivity to broader economic factors. The coming years may present challenges in housing affordability, potentially influencing the balance between homeowners and renters in this Pennsylvania borough.
