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Mountain Top: Rising Home Values Amidst Steady Ownership in Pennsylvania
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
Mountain Top, Pennsylvania, is a charming community nestled in Luzerne County. This growing area has seen its population increase from 13,184 in 2010 to 14,044 in 2022, reflecting a steady attraction to its suburban appeal. The city has maintained a remarkably high homeownership rate, consistently above 89%, while average home prices and rent have experienced notable fluctuations over the years.
The homeownership rate in Mountain Top has remained impressively stable, ranging from 89% to 92% between 2013 and 2022. This stability in homeownership coincided with a general upward trend in average home prices. In 2013, the average home price was $195,745, which steadily increased to $282,718 by 2022, representing a substantial 44.4% rise over this period. The peak in homeownership at 92% in 2018 and 2019 aligned with average home prices of $210,797 and $218,061 respectively, suggesting that even as prices rose, residents maintained a strong preference for owning their homes.
Federal interest rates have played a significant role in homeownership trends. The period from 2013 to 2016 saw historically low interest rates, hovering around 0.1% to 0.4%. This coincided with the steady homeownership rate of 89% to 90% in Mountain Top. As interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), interestingly, the area saw its highest homeownership rates of 92%, possibly due to residents securing homes before anticipated further rate increases.
Renter percentages in Mountain Top have remained relatively low, fluctuating between 8% and 11% from 2013 to 2022. Average rent prices, however, have shown considerable volatility. In 2013, the average rent was $522, which rose dramatically to $1,266 by 2018, a 142.5% increase. This peak in rent coincided with the lowest renter percentage of 8%. Subsequently, average rent decreased to $877 in 2022, while the renter percentage slightly increased to 10%. These trends suggest that higher rents may have pushed some residents towards homeownership, especially given the area's relatively affordable home prices.
In 2023, the average home price in Mountain Top reached $287,796, showing a continued upward trend. The federal interest rate for 2023 was 5.02%, significantly higher than previous years. Moving into 2024, the average home price has further increased to $307,384, while the federal interest rate has risen slightly to 5.33%. These figures indicate a resilient housing market despite higher borrowing costs.
Looking ahead, predictive models suggest that average home prices in Mountain Top will continue to rise over the next five years, potentially reaching around $350,000 by 2029. This projection is based on the consistent upward trend observed since 2013. Average rent prices, which have been more volatile, are expected to stabilize and potentially increase moderately, possibly reaching around $1,000 per month by 2029. However, these projections could be influenced by various factors including economic conditions and local development.
In summary, Mountain Top has demonstrated a robust housing market characterized by high homeownership rates and steadily increasing average home prices. The community has shown resilience in maintaining strong homeownership despite fluctuations in federal interest rates and average rent prices. The recent increases in both home prices and interest rates suggest a continued demand for housing in the area, likely driven by its growing population and suburban appeal.
