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Rising Home Values and Ownership in Temple, Pennsylvania: A Decade of Housing Market Dynamics
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
Temple, Pennsylvania, is a small community located in Berks County, covering an area of just 0.34 square miles. This densely populated area has experienced significant changes in its housing market and demographic composition over the past decade. The city has maintained a high rate of homeownership while seeing fluctuations in average home prices and rent costs.
Homeownership in Temple has remained consistently high, ranging from 72% to 80% between 2013 and 2022. This strong ownership trend coincided with a general increase in average home prices. In 2013, the average home price was $126,336, which steadily rose to $218,801 by 2022, representing a 73% increase over nine years. The most significant jump occurred between 2020 and 2021, with average home prices surging from $168,940 to $192,128, a 13.7% increase in just one year.
The relationship between federal interest rates and homeownership rates in Temple shows an interesting pattern. Despite historically low interest rates from 2010 to 2021 (ranging from 0.08% to 2.16%), homeownership rates remained relatively stable, hovering around 80%. This suggests that factors other than interest rates, such as local economic conditions or housing supply, may have played a more significant role in maintaining high homeownership levels in this community.
Renter percentages in Temple have fluctuated inversely to homeownership rates, ranging from 20% to 28% between 2013 and 2022. Average rent prices showed an overall upward trend during this period, increasing from $892 in 2013 to $1,054 in 2022, a 18.2% rise. However, rent prices experienced some volatility, peaking at $1,171 in 2017 before declining and then rising again. The population of Temple decreased from 4,147 in 2013 to 3,563 in 2022, which may have influenced the rental market dynamics.
In 2023, the average home price in Temple reached $231,768, continuing the upward trend observed in previous years. As of 2024, the average home price has further increased to $244,911, representing a 5.7% year-over-year growth. This rise in home prices coincides with higher federal interest rates, which stood at 5.02% in 2023 and 5.33% in 2024, potentially impacting affordability for prospective homebuyers.
Looking ahead, predictive models suggest that average home prices in Temple are likely to continue their upward trajectory over the next five years. Based on historical trends, we can expect average home prices to potentially reach around $280,000 to $300,000 by 2029. Rent prices may also continue to rise, albeit at a more moderate pace, potentially reaching an average of $1,200 to $1,300 per month in the same timeframe.
In summary, Temple has maintained a strong homeownership market despite fluctuations in average home prices and federal interest rates. The community has seen a significant increase in property values over the past decade, with this trend expected to continue. While the rental market has shown some volatility, it has generally trended upward in terms of prices. These patterns suggest a robust and dynamic housing market in Temple, with homeownership remaining a preferred option for the majority of residents.
