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Rising Home Values and Stable Ownership: Clarks Green, Pennsylvania's Resilient Housing Market
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
Clarks Green, located in Pennsylvania, is a small community with a population of 3,336 as of 2022. This charming borough has experienced fluctuations in homeownership rates and housing prices over the past decade, reflecting broader economic trends and local market dynamics.
The homeownership rate in Clarks Green has remained relatively stable, hovering around 88-91% between 2013 and 2022. During this period, average home prices have shown a consistent upward trend. In 2013, the average home price was $177,760, which increased to $281,117 by 2022, representing a significant 58% growth over nine years. This rise in home values coincided with a slight decrease in homeownership from 90% in 2013 to 89% in 2022, suggesting that while property values appreciated, it didn't substantially impact overall homeownership rates.
Federal interest rates have played a role in shaping homeownership trends in Clarks Green. From 2013 to 2016, when interest rates were historically low (ranging from 0.11% to 0.40%), homeownership remained steady at 88-90%. As interest rates began to rise more significantly from 2017 (1.00%) to 2019 (2.16%), there was a slight increase in homeownership, peaking at 91% in 2019. This could be attributed to residents securing mortgages before expected further rate increases.
Renter percentages in Clarks Green have shown minor fluctuations, ranging from 9% to 14% between 2013 and 2022. Average rent prices have been somewhat volatile during this period. In 2013, the average rent was $1,152, which increased to $1,211 by 2015. However, there was a significant drop to $789 in 2019, followed by a recovery to $1,225 in 2022. These fluctuations in rent prices don't show a strong correlation with the percentage of renters, suggesting that other factors, such as local economic conditions or housing supply, may have a more significant impact on the rental market.
In 2023 and 2024, Clarks Green saw continued growth in average home prices. The average home price reached $294,201 in 2023 and further increased to $304,587 in 2024. This represents a 4.6% year-over-year increase from 2023 to 2024. Concurrently, federal interest rates rose significantly, reaching 5.02% in 2023 and 5.33% in 2024, marking the highest levels in over a decade.
Looking ahead, based on historical trends and current market conditions, we can project that average home prices in Clarks Green may continue to rise over the next five years, albeit at a potentially slower pace due to higher interest rates. A conservative estimate might suggest an annual growth rate of 3-4%, which could bring the average home price to around $350,000-$370,000 by 2029. Rent prices, which have shown more volatility, may stabilize and increase moderately, potentially reaching an average of $1,400-$1,500 per month in the same timeframe.
In summary, Clarks Green has maintained a high homeownership rate despite rising home prices, demonstrating the community's strong preference for homeownership. The recent sharp increase in interest rates may pose challenges for new homebuyers, potentially leading to a slight increase in the renter population. However, the borough's historically stable ownership rates suggest that it may weather these changes without dramatic shifts in its housing market composition.
