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Rising Home Values and Declining Ownership in College Hill, Easton
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
College Hill, a historic neighborhood in Easton, Pennsylvania, has experienced significant changes in homeownership and property values over the past decade. From 2013 to 2022, homeownership rates decreased from 70% to 62%, while average home prices rose substantially from $175,523 to $292,612. During this period, average rent prices showed a modest increase from $1,211 to $1,240.
An inverse relationship between homeownership rates and average home prices has been observed in College Hill. As property values increased steadily from 2013 to 2022, homeownership rates declined. This trend suggests that rising home prices may have made homeownership less accessible for some residents. The most notable drop in homeownership occurred between 2015 and 2016, falling from 72% to 69%, coinciding with an increase in average home prices from $177,199 to $182,440.
Federal interest rates have played a crucial role in shaping homeownership trends in College Hill. From 2013 to 2015, when interest rates were very low (0.11% to 0.13%), homeownership rates remained stable at 70-72%. However, as interest rates began to rise more significantly from 2016 onwards, reaching 1.83% by 2018, homeownership rates declined to 65%. This trend aligns with the general principle that lower interest rates encourage homeownership due to more affordable financing options.
The renter population in College Hill has grown from 30% in 2013 to 38% in 2022, mirroring the decline in homeownership. Average rent prices have not shown a consistent upward trend despite the increased demand for rentals. Rent prices fluctuated, peaking at $1,261 in 2016 before dropping to $1,121 in 2017, and then gradually increasing to $1,240 by 2022. The population growth from 7,717 in 2013 to 8,091 in 2022 may have contributed to the overall demand for rental properties, despite the fluctuations in average rent prices.
Recent data shows that average home prices in College Hill continued to rise, reaching $307,560 in 2023 and further increasing to $328,824 in 2024. This represents a significant 12.4% increase from 2022 to 2024. Concurrently, federal interest rates have risen sharply, reaching 5.02% in 2023 and 5.33% in 2024, which may impact future homeownership rates and property values in the neighborhood.
Predictive models forecast that average home prices in College Hill will continue to rise, potentially reaching around $400,000 by 2029. This projection is based on the consistent upward trend observed over the past decade and the recent acceleration in price growth. Average rent prices are expected to follow a more moderate upward trajectory, potentially increasing to approximately $1,400 per month by 2029, reflecting the historical fluctuations and recent stabilization in rental rates.
In conclusion, College Hill has undergone a significant transformation in its housing landscape over the past decade. The inverse relationship between rising home prices and declining homeownership rates, influenced by fluctuating interest rates, has reshaped the neighborhood's residential profile. The growing renter population and the recent sharp increase in both home prices and interest rates suggest that College Hill may continue to experience changes in its housing market dynamics in the coming years.
