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Rising Home Values and Declining Ownership: Pennsbury Village's Housing Trends
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
Pennsbury Village, located in Pennsylvania, is a small, densely populated community with a unique demographic profile. Over the past decade, this borough has experienced significant shifts in homeownership rates and housing costs, reflecting broader economic trends and local market dynamics.
The homeownership rate in Pennsbury Village has seen a notable decline from 2013 to 2022. In 2013, 82% of residents were homeowners, but by 2022, this figure had dropped to 69%. This 13 percentage point decrease indicates a substantial shift in the local housing market. Concurrently, average home prices have shown a steady increase. In 2013, the average home price was $98,326, rising to $149,413 by 2022, representing a 52% increase over this period.
The trend in homeownership rates appears to have an inverse relationship with federal interest rates. For instance, when interest rates were at historic lows between 2013 and 2016 (ranging from 0.11% to 0.40%), homeownership rates remained relatively stable at around 80-83%. However, as interest rates began to rise more significantly from 2017 onwards, reaching 1.68% by 2022, homeownership rates declined more rapidly, falling to 69% by 2022.
Renter percentages in Pennsbury Village have correspondingly increased from 18% in 2013 to 31% in 2022. This rise in renters has been accompanied by a significant increase in average rent prices. In 2013, the average rent was $977, which grew to $1,203 by 2022, a 23% increase. It's worth noting that despite the overall population decrease from 641 in 2013 to 633 in 2022, the demand for rental properties has grown, potentially driven by factors such as housing affordability concerns and changing demographic preferences.
In 2023 and 2024, the housing market in Pennsbury Village continued to evolve. The average home price reached $157,652 in 2023 and further increased to $167,650 in 2024, representing a 12.2% growth over these two years. This price appreciation occurred despite a significant rise in federal interest rates, which stood at 5.02% in 2023 and 5.33% in 2024, potentially impacting affordability for prospective homebuyers.
Looking ahead, based on historical trends and current market conditions, we can project continued growth in both average home prices and rent prices over the next five years. Average home prices could potentially reach around $200,000 by 2029, assuming a similar growth rate to recent years. Average rent prices might increase to approximately $1,500 per month in the same timeframe, reflecting ongoing demand for rental properties and overall housing market appreciation.
In summary, Pennsbury Village has experienced a significant shift from homeownership to renting over the past decade, with rising home prices and rents despite population fluctuations. The interplay between federal interest rates, local economic conditions, and housing affordability continues to shape the residential landscape of this Pennsylvania community. These trends suggest a changing housing market that may present both challenges and opportunities for current and future residents of Pennsbury Village.
