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Narberth: Rising Home Values Amidst Shifting Ownership Trends
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Narberth, located in Pennsylvania, is a small but vibrant community known for its charming downtown area and strong sense of community. Over the past decade, this borough has experienced fluctuations in homeownership rates and significant increases in both average home prices and average rent prices.
The homeownership rate in Narberth has shown an interesting trend from 2013 to 2022. In 2013, the homeownership rate stood at 57%. It reached its peak in 2017 at 65%, before gradually declining to 56% in 2022. This trend correlates interestingly with the average home prices in the area. In 2013, the average home price was $406,510. As homeownership increased, so did home prices, reaching $482,139 in 2017. The average home price continued to rise even as homeownership rates declined, reaching $663,075 in 2022, representing a 63% increase from 2013 to 2022.
The federal interest rates have played a significant role in shaping homeownership trends in Narberth. From 2013 to 2016, interest rates remained below 0.5%, coinciding with an increase in homeownership from 57% to 61%. As interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, we observed a gradual decline in homeownership rates. This trend aligns with the general principle that lower interest rates tend to encourage homeownership due to more affordable financing options.
The renter population in Narberth has shown an inverse relationship to homeownership rates. In 2013, 42% of the population were renters. This percentage decreased to a low of 35% in 2017, before climbing back up to 44% in 2022. Interestingly, average rent prices have steadily increased despite these fluctuations. In 2013, the average rent was $1,253, which rose to $1,462 by 2022, marking a 17% increase. This upward trend in rent prices, despite varying renter percentages, could be attributed to the overall increase in property values and the growing population, which rose from 4,253 in 2013 to 4,478 in 2022.
In 2023 and 2024, we see a continuation of the upward trend in average home prices in Narberth. The average home price reached $707,617 in 2023 and further increased to $750,939 in 2024. This represents a significant 13% increase in just two years. Concurrently, federal interest rates rose sharply to 5.02% in 2023 and 5.33% in 2024, potentially impacting homeownership affordability.
Looking ahead, based on the historical trends and current market conditions, we can project that average home prices in Narberth will continue to rise over the next five years, potentially reaching around $900,000 by 2029. Average rent prices are also expected to increase, possibly surpassing $1,700 per month in the same timeframe. However, these projections are subject to various economic factors and market conditions.
In summary, Narberth has experienced a notable shift in its housing landscape over the past decade. While homeownership rates have fluctuated, both average home prices and rent prices have shown consistent upward trends. The interplay between federal interest rates, property values, and population growth has significantly influenced these housing market dynamics. As the community continues to evolve, these trends will likely shape the future of housing in Narberth.
