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Rising Home Values and Declining Ownership in West Park Historic District, Allentown
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
The West Park Historic District in Allentown, Pennsylvania, has experienced significant changes in homeownership and property values over the past decade. This neighborhood, known for its Victorian-era homes and tree-lined streets, has seen a shift from homeownership to renting, accompanied by substantial increases in both home prices and rent.
From 2013 to 2022, homeownership rates in the West Park Historic District declined from 33% to 20%. During this same period, average home prices rose dramatically from $75,760 to $197,011, representing a 160% increase. This trend continued into 2023 and 2024, with average home prices reaching $209,990 and $222,779 respectively, marking a 6.6% year-over-year increase from 2023 to 2024.
The relationship between federal interest rates and homeownership rates in the neighborhood showed some correlation. As interest rates rose from historic lows of 0.11% to 0.13% between 2013 and 2015 to 1.68% in 2022, and further to 5.33% in 2024, homeownership rates declined more sharply. This suggests that rising interest rates may have contributed to decreased affordability of homeownership in the area.
As homeownership declined, the percentage of renters in the West Park Historic District increased from 67% in 2013 to 80% in 2022. This shift towards renting coincided with a steady rise in average rent prices, which increased from $764 per month in 2013 to $944 in 2022, a 23.6% increase. The growing renter population, which rose from 10,604 in 2013 to 11,046 in 2022, likely contributed to the upward pressure on rent prices.
Predictive models suggest that both average home prices and average rent prices in the West Park Historic District are likely to continue their upward trajectory over the next five years. Average home prices are projected to increase by approximately 4-5% annually, potentially reaching around $270,000 by 2029. Average rent prices are expected to rise at a similar rate, potentially surpassing $1,100 per month within the same timeframe.
In summary, the West Park Historic District has experienced a significant shift towards renting, with homeownership rates declining by 13 percentage points from 2013 to 2022. This trend has occurred alongside substantial increases in both average home prices and average rent prices. The neighborhood's desirability, combined with broader economic factors such as rising interest rates, has likely contributed to these trends. As the area continues to evolve, it will be crucial to monitor how these housing market dynamics impact the neighborhood's character and demographic composition.
