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Rising Home Values in Summit Hill: A Former Coal Mining Town's 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
Summit Hill, located in Pennsylvania, is a small community with a rich history and evolving demographics. Over the past decade, the city has experienced fluctuations in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market dynamics.
The homeownership rate in Summit Hill has shown some variability over the years. In 2013, the homeownership rate stood at 78%. It reached its peak in 2014 at 82%, before experiencing a significant drop to 65% in 2017. By 2022, the rate had rebounded to 81%, indicating a strong preference for homeownership among residents. This trend generally aligns with changes in average home prices. From 2013 to 2016, average home prices declined from $73,287 to $68,294, which may have contributed to the high homeownership rates during that period. However, as prices began to rise from 2017 onwards, reaching $125,059 in 2022, the homeownership rate initially dipped but then recovered strongly.
The relationship between federal interest rates and homeownership rates in Summit Hill shows some correlation. When interest rates were at historic lows between 2013 and 2016 (ranging from 0.09% to 0.40%), homeownership rates remained relatively high, above 70%. As interest rates began to rise from 2017 to 2019 (1.00% to 2.16%), there was a noticeable dip in homeownership rates, reaching a low of 65% in 2017. However, the subsequent drop in interest rates in 2020 and 2021 (to 0.38% and 0.08% respectively) coincided with a rebound in homeownership rates, climbing back to 73% by 2021.
Renter percentages and average rent prices in Summit Hill have shown an interesting inverse relationship. In 2013, when the renter percentage was 22%, the average rent was $930. As the renter percentage increased to 35% in 2017, the average rent also rose to $985. However, by 2022, as the renter percentage decreased to 19%, the average rent had dropped slightly to $920. This suggests that as rental demand fluctuated, it had some impact on rental prices, though other factors likely played a role as well.
In 2023 and 2024, Summit Hill experienced continued growth in average home prices. The average home price in 2023 was $132,391, representing a 5.9% increase from 2022. In 2024, the average home price further increased to $138,531, a 4.6% rise from the previous year. Concurrently, federal interest rates rose significantly, reaching 5.02% in 2023 and 5.33% in 2024, which may impact future homeownership trends.
Looking ahead, based on the trends observed, we can project potential scenarios for the next five years. Average home prices in Summit Hill have shown a consistent upward trajectory since 2016, with an average annual growth rate of approximately 12.5% between 2016 and 2024. If this trend continues, we could see average home prices reaching around $250,000 by 2029. However, the rate of increase may moderate due to higher interest rates. For average rent prices, the trend has been more variable, but assuming a modest annual increase of 2-3%, we might expect average rents to reach approximately $1,050-$1,100 by 2029.
In summary, Summit Hill has demonstrated resilience in its housing market, with strong homeownership rates despite fluctuations in home prices and interest rates. The inverse relationship between renter percentages and average rent prices suggests a dynamic rental market responsive to demand. As the community continues to evolve, these trends in homeownership and rental markets will likely play a crucial role in shaping the borough's future demographic and economic landscape.
