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Rising Home Values and Shifting Ownership in Elizabethtown: A Decade of Housing Market Changes
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Elizabethtown, located in Pennsylvania, is a charming community with a rich history dating back to the 18th century. Known for its vibrant downtown and proximity to Elizabethtown College, this borough has experienced interesting trends in homeownership and housing prices over the past decade. The ownership percentage has seen a slight decline, while average home prices have steadily increased. Average rent prices have also shown an upward trend, reflecting the changing dynamics of the local real estate market.
The homeownership rate in Elizabethtown has experienced a gradual decline from 2013 to 2022. In 2013, 57% of housing units were owner-occupied, but by 2022, this figure had decreased to 54%. During this same period, average home prices in the borough saw a significant increase. In 2013, the average home price was $182,202, and by 2022, it had risen to $295,374, representing a substantial 62% increase over nine years. This inverse relationship between homeownership rates and average home prices suggests that rising property values may have made homeownership less attainable for some residents.
Federal interest rates have played a role in shaping homeownership trends in Elizabethtown. From 2013 to 2016, interest rates remained relatively low, hovering around 0.1% to 0.4%. During this period, the homeownership rate remained fairly stable, ranging from 55% to 58%. However, as interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, the homeownership rate saw a more pronounced decline, dropping to 54% in 2022. This trend aligns with the general principle that higher interest rates can make mortgages less affordable, potentially discouraging homeownership.
As homeownership rates declined, the percentage of renters in Elizabethtown increased from 43% in 2013 to 46% in 2022. Correspondingly, average rent prices rose from $1,086 in 2013 to $1,125 in 2022, an increase of 3.6%. The population of Elizabethtown remained relatively stable during this period, growing slightly from 11,598 in 2013 to 11,805 in 2022. This modest population growth, combined with the shift towards renting, likely contributed to the upward pressure on rent prices.
In 2023 and 2024, Elizabethtown continued to experience growth in average home prices. The average home price reached $313,643 in 2023 and further increased to $325,589 in 2024, representing a 10.2% rise over two years. Concurrently, federal interest rates climbed to 5.02% in 2023 and 5.33% in 2024, reaching levels not seen since the early 2000s. These higher interest rates may pose challenges for potential homebuyers in the coming years.
Looking ahead, predictive models suggest that average home prices in Elizabethtown may continue to rise over the next five years, albeit at a potentially slower pace due to higher interest rates. Average home prices could reach approximately $350,000 to $375,000 by 2029. Average rent prices are also expected to increase, potentially reaching $1,200 to $1,250 per month by 2029, driven by ongoing demand for rental properties and overall market conditions.
In summary, Elizabethtown has experienced a gradual shift from homeownership to renting over the past decade, accompanied by significant increases in average home prices and modest growth in average rent prices. The interplay between federal interest rates, housing affordability, and population dynamics has shaped these trends. As the community continues to evolve, balancing housing affordability with market forces will likely remain a key consideration for residents and policymakers alike.
