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Rising Home Values and Shifting Ownership in Fairless Hills, Pennsylvania
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
Fairless Hills, located in Pennsylvania, is a suburban community known for its proximity to Philadelphia and its rich industrial history. Over the past decade, this area has experienced notable shifts in homeownership rates and housing market dynamics. The city has generally maintained a high percentage of owner-occupied homes, while average home prices and average rent prices have shown an upward trend.
The homeownership rate in Fairless Hills has remained relatively stable, with a slight decline from 73% in 2013 to 69% in 2022. During this period, average home prices have shown a consistent upward trend. In 2013, the average home price was $216,978, which increased to $353,233 by 2022, representing a substantial 62.8% growth over nine years. This trend suggests that despite rising home values, Fairless Hills has managed to maintain a high rate of homeownership, indicating a strong local housing market and potentially favorable economic conditions for residents.
Federal interest rates have played a significant role in shaping homeownership trends in Fairless Hills. From 2013 to 2016, when interest rates were exceptionally low (ranging from 0.11% to 0.40%), the homeownership rate remained relatively stable at around 71-73%. As interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), there was a slight decrease in homeownership to 70%. This trend aligns with the general principle that lower interest rates tend to encourage homeownership due to more affordable financing options.
Renter percentages in Fairless Hills have shown a gradual increase, rising from 27% in 2013 to 31% in 2022. Concurrently, average rent prices have also experienced an upward trend. In 2013, the average rent was $1,044, which increased to $1,035 by 2022. However, it's worth noting that rent prices peaked at $1,175 in 2021 before slightly decreasing. This trend in rental rates, coupled with the increasing renter percentage, suggests a growing demand for rental properties in the area, possibly driven by factors such as population growth or changing housing preferences.
As of 2024, the average home price in Fairless Hills stands at $390,341, showing a significant increase from the 2022 figure of $353,233. This represents a 10.5% growth in just two years. The federal interest rate for 2024 is 5.33%, which is notably higher than the 1.68% rate in 2022. Despite this substantial increase in interest rates, home prices have continued to rise, indicating strong demand and potentially limited supply in the local housing market.
Looking ahead, based on the historical data and current trends, we can project that average home prices in Fairless Hills are likely to continue their upward trajectory over the next five years. If the current growth rate persists, average home prices could potentially reach around $450,000 by 2029. Average rent prices, which have shown more volatility, may stabilize or see moderate increases, potentially reaching around $1,200 to $1,300 per month in the same timeframe.
In summary, Fairless Hills has demonstrated a resilient housing market characterized by consistently high homeownership rates despite rising home prices. The interplay between federal interest rates, home prices, and rental trends suggests a dynamic market that has thus far maintained its attractiveness to both homeowners and renters. The continued rise in both home prices and rental rates, coupled with the recent increase in the renter population, indicates a growing demand for housing in this Pennsylvania community.
