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Rising Home Values and Shifting Ownership in Lanning Square, Camden
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
Lanning Square, a neighborhood in Camden, New Jersey, has experienced significant changes in its housing market over the past decade. This urban area has seen a shift towards a renter-majority population, with homeownership rates declining despite periods of low interest rates. The neighborhood's real estate market has shown resilience and growth, particularly in home values, even in the face of rising interest rates.
The homeownership rate in Lanning Square has shown a notable decline in recent years. In 2017, the neighborhood reached its peak homeownership rate of 50%. However, this figure has since decreased, dropping to 36% by 2022. This decline in homeownership coincides with significant changes in average home prices. In 2010, the average home price in Lanning Square was $129,127. The market experienced a sharp decline, reaching its lowest point in 2016 at $78,420. Since then, there has been a steady recovery, with the average home price rising to $116,424 by 2022, representing a 48.5% increase from the 2016 low.
Federal interest rates have played a role in shaping homeownership trends in Lanning Square. The period of historically low interest rates from 2010 to 2021, ranging from 0.08% to 0.40%, coincided with fluctuations in homeownership rates. Despite these low rates, which typically encourage homebuying, Lanning Square saw a decline in homeownership from 47% in 2016 to 36% in 2022. This suggests that other local factors may have had a stronger influence on homeownership than interest rates alone.
As homeownership declined, the percentage of renters in Lanning Square increased from 50% in 2017 to 64% in 2022. This shift towards renting has been accompanied by changes in average rent prices. In 2013, the average rent was $1,072. After a period of decline, reaching $910 in 2014, rent prices have shown an overall upward trend. By 2022, the average rent had risen to $1,013, marking a 11.3% increase from the 2014 low. The population of Lanning Square has remained relatively stable during this period, with 2,634 residents in 2022, suggesting that changes in rent prices are more likely influenced by market factors rather than significant population shifts.
In 2023, the average home price in Lanning Square reached $119,926, continuing the upward trend observed in recent years. This represents a 3% increase from 2022. Moving into 2024, the average home price has further increased to $124,784, marking a 4% rise from 2023. These increases have occurred despite the Federal interest rate climbing to 5.02% in 2023 and 5.33% in 2024, which are the highest rates seen since 2007.
Looking ahead, based on current trends and market conditions, we can expect the average home prices in Lanning Square to continue their upward trajectory over the next five years. Projections suggest that by 2029, average home prices could reach approximately $145,000 to $150,000, assuming a steady annual growth rate of 3-4%. For rent prices, if the current trend persists, we may see average rents increase to around $1,200 to $1,250 per month by 2029, reflecting an annual growth rate of about 2-3%.
In summary, Lanning Square has experienced a shift towards a renter-majority population, with homeownership rates declining despite periods of low interest rates. Average home prices have rebounded significantly from their 2016 low, showing resilience and growth even in the face of rising interest rates. Rent prices have also shown an overall upward trend. These patterns suggest a dynamic real estate market in Lanning Square, with potential for continued growth in both home values and rent prices in the coming years.
