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Rising Home Values and Ownership in Monessen: A Decade of Change
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
Monessen, Pennsylvania, a small city in Westmoreland County with a rich industrial history, has experienced significant changes in its housing market over the past decade. As of 2022, the city had a population of 6,876 and covered an area of 2.89 square miles. From 2013 to 2022, Monessen saw a notable shift in homeownership rates, with a gradual increase in owner-occupied housing units. This trend was accompanied by fluctuations in average home prices and rent prices, reflecting broader economic trends and local market conditions.
The trend in homeownership rates in Monessen has shown a steady increase from 2013 to 2022. In 2013, the homeownership rate was 68%, and by 2022, it had risen to 77%, representing a significant 9 percentage point increase over nine years. This upward trend in homeownership coincided with a general increase in average home prices. In 2013, the average home price in Monessen was $39,277, and by 2022, it had risen to $70,924, marking an impressive 80.6% increase. This correlation suggests that despite rising home prices, more residents were able to enter the housing market, possibly due to other favorable economic factors or local initiatives promoting homeownership.
The relationship between federal interest rates and homeownership rates in Monessen presents an interesting case. From 2013 to 2020, interest rates remained relatively low, ranging from 0.09% to 2.16%. During this period, homeownership rates in Monessen increased from 68% to 75%. This aligns with the general trend of lower interest rates encouraging homeownership due to more affordable financing options. However, it's worth noting that even as interest rates began to rise more sharply in 2022 (1.68%), the homeownership rate in Monessen continued to increase, reaching 77% that year.
The renter percentage in Monessen has correspondingly decreased as homeownership rates have risen. In 2013, 32% of housing units were renter-occupied, and by 2022, this figure had dropped to 23%. Interestingly, average rent prices have shown some volatility over this period. The average rent was $753 in 2013, peaked at $823 in 2021, and then decreased to $749 in 2022. This fluctuation in rent prices, combined with the decreasing renter population, suggests a complex rental market in Monessen that may be influenced by factors such as housing availability, local economic conditions, and changing demographics.
In 2023 and 2024, Monessen continued to see growth in average home prices. The average home price reached $74,204 in 2023 and further increased to $78,169 in 2024, representing a 5.3% and 10.2% increase from 2022, respectively. This upward trend in home prices occurred despite a significant rise in federal interest rates, which stood at 5.02% in 2023 and 5.33% in 2024. These higher interest rates typically make borrowing more expensive, yet the Monessen housing market has shown resilience in terms of price appreciation.
Looking ahead, based on the trends observed, we can project continued growth in average home prices in Monessen over the next five years, albeit potentially at a more moderate pace due to higher interest rates. Average home prices could potentially reach around $90,000 to $95,000 by 2029 if the current trajectory continues. Rent prices, which have shown more volatility, may stabilize or see modest increases, potentially reaching an average of $850 to $900 per month by 2029. However, these projections are subject to various economic factors and local market conditions.
In summary, Monessen has experienced a significant increase in homeownership rates over the past decade, accompanied by substantial growth in average home prices. This trend has persisted even in the face of rising interest rates, suggesting strong local demand for homeownership. The rental market has seen a decrease in the proportion of renters, with fluctuating rent prices. As Monessen moves forward, the housing market appears poised for continued growth, with homeownership remaining a strong trend among residents.
