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Pottsville's Housing Market: Rising Home Values and Shifting Ownership in America's Oldest Brewery 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
Pottsville, Pennsylvania, a historic city in Schuylkill County, is renowned for its coal mining heritage and as the birthplace of Yuengling, America's oldest brewery. This small city, with a population of 13,386 in 2022, has experienced significant changes in homeownership rates and housing prices over the past decade. The city has witnessed a general trend of increasing homeownership rates, accompanied by fluctuations in average home prices and rent prices.
The homeownership rate in Pottsville has shown an overall upward trend from 2013 to 2022, despite some recent declines. In 2013, the homeownership rate was 54%, which steadily increased to a peak of 64% in 2017 and 2018. However, there has been a slight decrease in recent years, with the rate settling at 56% in 2022. This trend coincides with changes in average home prices. The average home price in Pottsville was $66,949 in 2013, reaching a low of $65,956 in 2014 before beginning a steady climb. By 2022, the average home price had risen significantly to $117,512, representing a 78% increase from its 2014 low.
The relationship between federal interest rates and homeownership rates in Pottsville shows some correlation. As interest rates remained low from 2013 to 2016 (ranging from 0.09% to 0.40%), homeownership rates increased from 54% to 58%. The continued low interest rates through 2020 (dropping to 0.08% in 2021) likely contributed to the sustained high homeownership rates of 63-64% observed from 2017 to 2019. However, the recent uptick in interest rates to 1.68% in 2022 coincides with a slight decrease in homeownership to 56%, suggesting that higher borrowing costs may be impacting affordability.
Renter percentages in Pottsville have generally mirrored the inverse of homeownership trends. The percentage of renters decreased from 46% in 2013 to a low of 36% in 2017 and 2018, before rising again to 44% in 2022. Average rent prices have shown volatility during this period. In 2013, the average rent was $558, which increased to $693 in 2016 before fluctuating and ultimately reaching $713 in 2022. This represents a 27.8% increase in average rent from 2013 to 2022. The fluctuations in rent prices and renter percentages may be influenced by the city's declining population, which dropped from 14,226 in 2013 to 13,386 in 2022.
Looking at the most recent data, the average home price in Pottsville continued its upward trajectory, reaching $120,337 in 2023 and further increasing to $128,848 in 2024. This represents a 9.6% increase from 2022 to 2024. Concurrently, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024, which may impact future homeownership rates and housing affordability in the city.
Applying predictive models to forecast 5-year trends, we can expect average home prices in Pottsville to continue their upward trajectory, potentially reaching around $150,000 by 2029. This projection is based on the consistent growth observed over the past decade and the recent acceleration in price increases. Average rent prices are also likely to continue rising, albeit at a more moderate pace, potentially reaching around $800-$850 per month by 2029. These projections assume a relatively stable economic environment and continued population trends in the city.
In summary, Pottsville has experienced a notable increase in homeownership rates and average home prices over the past decade, with some recent moderation. The city has also seen fluctuations in renter percentages and average rent prices, influenced by population changes and economic factors. The significant rise in federal interest rates in recent years may pose challenges for future homeownership growth, but the continued increase in average home prices suggests ongoing demand in the local real estate market. As Pottsville moves forward, balancing housing affordability with market growth will be crucial for maintaining a diverse and stable residential community.
