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Rising Home Values and Declining Ownership in East Bangor, Pennsylvania: A Decade of Housing Market Shifts
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
East Bangor, located in Pennsylvania, is a small community with a rich history dating back to the late 19th century. The town has experienced significant changes in its homeownership rates and housing market over the past decade. From 2013 to 2022, East Bangor saw a notable decline in homeownership, coupled with fluctuations in average home prices and rent costs.
The homeownership rate in East Bangor decreased from 74% in 2013 to 60% in 2022, indicating a shift towards a more renter-oriented community. During this same period, average home prices showed an overall upward trend. In 2013, the average home price was $115,847, which increased to $205,655 by 2022, representing a substantial 77.5% growth. This inverse relationship between homeownership rates and home prices suggests that rising property values may have made homeownership less attainable for some residents.
Federal interest rates have played a significant role in shaping homeownership trends in East Bangor. From 2013 to 2016, when interest rates were historically low (ranging from 0.11% to 0.40%), homeownership rates remained relatively stable, hovering around 70%. However, as interest rates began to rise more significantly from 2017 (1.00%) to 2019 (2.16%), homeownership rates started to decline more rapidly, dropping to 62% by 2019. This trend aligns with the general principle that higher interest rates can make mortgages less affordable, potentially discouraging homeownership.
The renter population in East Bangor has grown from 26% in 2013 to 40% in 2022, mirroring the decline in homeownership. Interestingly, average rent prices have shown considerable volatility during this period. In 2013, the average rent was $916, which increased to a peak of $1,496 in 2019 before declining to $1,002 in 2022. This fluctuation in rent prices, coupled with the growing renter population, suggests a complex rental market influenced by factors such as housing supply, local economic conditions, and possibly the impacts of the COVID-19 pandemic.
Looking at the most recent data, average home prices in East Bangor continued to rise, reaching $218,533 in 2023 and $236,029 in 2024. This represents a 14.8% increase from 2022 to 2024. Simultaneously, federal interest rates have increased significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates, combined with rising home prices, may present challenges for potential homebuyers in the near future.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in East Bangor will continue to rise, potentially reaching around $275,000 by 2029. This projection is based on the consistent upward trend observed over the past decade. For rent prices, we expect a more moderate increase, potentially stabilizing around $1,200 to $1,300 per month by 2029, assuming economic conditions remain stable and housing supply keeps pace with demand.
In summary, East Bangor has experienced a significant shift from a predominantly homeowner community to one with a more balanced mix of owners and renters. The inverse relationship between rising home prices and declining homeownership rates, influenced by fluctuating interest rates, has been a key feature of the local housing market. As the community continues to evolve, balancing affordable housing options with the upward pressure on property values will likely be a crucial consideration for local policymakers and residents alike.
