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Pleasant Gap: Rising Home Values and Shifting Ownership in a Pennsylvania Community
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
Pleasant Gap, Pennsylvania, is a small but growing community located in Centre County. With a population of 4,454 in 2022 and covering an area of 1.6 square miles, this charming town has experienced significant changes in homeownership rates and housing prices over the past decade. The town has seen a general trend of decreasing homeownership rates, while average home prices have steadily increased.
The homeownership rate in Pleasant Gap has shown a gradual decline from 2013 to 2022. In 2013, 72% of residents were homeowners, but by 2022, this figure had dropped to 66%. Conversely, average home prices have risen substantially during this period. In 2013, the average home price was $157,551, and by 2022, it had increased to $239,662, representing a 52% growth over nine years.
The relationship between federal interest rates and homeownership rates in Pleasant Gap appears to follow the general trend observed nationwide. As interest rates remained low between 2013 and 2021 (ranging from 0.08% to 1.83%), homeownership rates fluctuated but remained relatively stable. However, as interest rates began to rise sharply in 2022 (1.68%) and 2023 (5.02%), homeownership rates declined more noticeably, dropping from 70% in 2020 to 66% in 2022.
The percentage of renters in Pleasant Gap has increased from 28% in 2013 to 34% in 2022. Average rent prices have not shown a consistent upward trend during this period. In 2013, the average rent was $1,047, peaking at $1,138 in 2015 before declining to $939 in 2022. This fluctuation in rent prices, despite the increasing renter population, could be attributed to various factors such as local economic conditions or changes in housing supply.
Looking at the most recent data, the average home price in Pleasant Gap continued to rise in 2023, reaching $250,466. In 2024, the average home price further increased to $258,336. These increases occurred despite the federal interest rate rising to 5.33% in 2024, which typically would be expected to slow down home price growth.
Based on the historical data and current trends, we can forecast the following 5-year trends for Pleasant Gap: 1) Average home prices are likely to continue rising, albeit at a slower pace due to higher interest rates. By 2029, average home prices could reach approximately $300,000 to $320,000. 2) Average rent prices may stabilize or show modest increases as the rental market adjusts to the growing renter population. We might see average rents return to the $1,000-$1,100 range by 2029.
In summary, Pleasant Gap has experienced a shift towards a higher proportion of renters over the past decade, coupled with substantial increases in average home prices. Despite rising interest rates, home prices have continued to climb, reflecting the area's desirability and potential economic growth. The rental market has shown more volatility, with recent declines in average rents despite increased demand. These trends suggest a dynamic housing market in Pleasant Gap, with potential opportunities and challenges for both homeowners and renters in the coming years.
