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Rising Home Values and Ownership in Bessemer, Pennsylvania: A Decade of Housing Market Trends
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Bessemer, located in Pennsylvania, is a small community that has experienced notable shifts in its housing market over the past decade. The town has seen fluctuations in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local dynamics.
The homeownership rate in Bessemer has shown an overall upward trend from 2013 to 2022, with some fluctuations. In 2013, the homeownership rate was 81%, which increased to 88% by 2021, before slightly decreasing to 82% in 2022. This trend generally aligns with the changes in average home prices, which have seen a significant increase over the same period. The average home price in 2014 was $84,644, and it steadily rose to $124,023 by 2022, representing a 46.5% increase over eight years.
The relationship between federal interest rates and homeownership rates in Bessemer appears to follow the expected pattern. For instance, when interest rates were at historic lows between 2013 and 2016 (ranging from 0.09% to 0.40%), the homeownership rate remained relatively stable around 80%. As interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, the homeownership rate actually increased to 82%, suggesting that local factors may have played a more significant role in homeownership decisions than national interest rates during this period.
The renter percentage in Bessemer has generally decreased from 2013 to 2022, inversely mirroring the homeownership trend. In 2013, 19% of residents were renters, which decreased to 12% by 2021 before increasing slightly to 18% in 2022. Interestingly, despite the overall decrease in the renter population, average rent prices have shown an upward trend. The average rent price increased from $551 in 2013 to $803 in 2022, representing a 45.7% increase over nine years. This trend suggests that despite fewer renters, demand for rental properties remained strong, possibly due to factors such as limited housing supply or improvements in rental property quality.
Looking at the most recent data, the average home price in Bessemer continued to rise, reaching $128,349 in 2023 and $131,600 in 2024. This represents a 6.1% increase from 2022 to 2024. Concurrently, federal interest rates have also increased significantly, reaching 5.02% in 2023 and 5.33% in 2024, which could potentially impact future homeownership rates and home prices.
Based on the observed trends, we can forecast that average home prices in Bessemer are likely to continue their upward trajectory over the next five years, albeit potentially at a slower rate due to higher interest rates. Average rent prices are also expected to increase, following the established trend and reflecting the overall rise in housing costs. However, the rate of increase may moderate as the market adjusts to economic conditions and local housing supply and demand factors.
In summary, Bessemer has experienced a general increase in homeownership rates and a significant rise in both average home prices and average rent prices over the past decade. The interplay between these factors, along with broader economic conditions such as interest rates, has shaped the local housing market. As the community moves forward, these trends are likely to continue influencing housing affordability and accessibility for both homeowners and renters in the area.
