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Rising Home Values and Shifting Ownership in Highspire, Pennsylvania: A Decade of Housing Market Dynamics
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Highspire, Pennsylvania is a small borough located in Dauphin County, covering just 0.72 square miles. This compact community has experienced fluctuating homeownership rates and housing prices over the past decade, reflecting broader economic trends and local market dynamics.
The homeownership rate in Highspire has shown a general decline from 2013 to 2022. In 2013, 60% of housing units were owner-occupied, but by 2022, this figure had decreased to 48%. This shift coincided with significant changes in average home prices. The average home price in Highspire was $101,274 in 2010, dropped to a low of $85,490 in 2015, and then began a steady climb, reaching $143,643 by 2022. This represents a 42% increase in average home prices from 2010 to 2022, despite the initial decline.
The relationship between federal interest rates and homeownership rates in Highspire follows some expected patterns. When interest rates were at historic lows between 2013 and 2016 (ranging from 0.09% to 0.4%), homeownership rates remained relatively stable, hovering around 60%. However, as interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, homeownership rates declined more sharply, falling to 48% by 2022. This trend aligns with the general principle that higher interest rates can make mortgages less affordable, potentially discouraging homeownership.
The rental market in Highspire has shown interesting trends as well. The percentage of renter-occupied units increased from 40% in 2013 to 52% in 2022, inversely mirroring the decline in homeownership. Average rent prices have also risen, though not as dramatically as home prices. In 2013, the average rent was $892, which increased to $1,049 by 2022, representing a 17.6% increase over this period. The population fluctuations, ranging from a low of 2,249 in 2015 to a high of 2,709 in 2022, likely influenced the demand for rental properties and contributed to the rising rent prices.
In 2023 and 2024, Highspire's housing market continued its upward trajectory. The average home price reached $155,060 in 2023 and further increased to $167,338 in 2024, representing a 16.5% increase from 2022 to 2024. Concurrently, federal interest rates rose significantly, reaching 5.02% in 2023 and 5.33% in 2024, which could potentially impact future homeownership rates and market dynamics.
Looking ahead, based on the trends observed, we can project continued growth in both average home prices and rent prices over the next five years. Average home prices could potentially reach around $200,000 by 2029, assuming a similar growth rate to recent years. Average rent prices might increase to approximately $1,200 per month in the same timeframe, though this growth may be more moderate compared to home prices.
In summary, Highspire has experienced a shift towards a more renter-dominated market over the past decade, with declining homeownership rates despite an overall increase in average home prices. The interplay between rising home values, increasing interest rates, and changing population dynamics has shaped these trends. As the community continues to evolve, it will be crucial to monitor how these factors influence housing affordability and accessibility for both homeowners and renters in this small Pennsylvania borough.
