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Ross Neighborhood Housing Analysis: Rising Home Values and Ownership Rates Amidst Urban Diversity
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
The Ross neighborhood in Lancaster, Pennsylvania, has experienced significant changes in homeownership rates and housing prices over the past decade. This analysis explores the trends in ownership percentages, average home prices, and average rent prices, providing insights into the neighborhood's real estate dynamics. From 2013 to 2022, the Ross neighborhood saw a notable shift in homeownership rates. In 2013, 49% of housing units were owner-occupied, while 51% were renter-occupied. By 2022, this balance had shifted significantly, with 55% of units being owner-occupied and 45% renter-occupied. This increase in homeownership coincided with a substantial rise in average home prices. In 2013, the average home price in Ross was $98,869. By 2022, this figure had more than doubled to $208,008, representing a 110% increase over the nine-year period.
The relationship between federal interest rates and homeownership rates in Ross is noteworthy. From 2013 to 2016, when interest rates were historically low (ranging from 0.11% to 0.40%), homeownership rates actually declined slightly from 49% to 46%. However, as interest rates began to rise more significantly from 2017 onwards, reaching 1.68% in 2022, homeownership rates in Ross increased to 55%. This trend suggests that factors beyond interest rates, such as local economic conditions and housing market dynamics, may have played a more significant role in driving homeownership in the neighborhood.
Regarding rental trends, the percentage of renter-occupied units in Ross decreased from 53% in 2019 to 45% in 2022. Despite this decline in the renter population, average rent prices continued to rise. In 2013, the average rent was $916 per month. By 2022, it had increased to $1,059, representing a 15.6% increase over the period. This upward trend in rent prices occurred even as the neighborhood's population decreased from 8,219 in 2019 to 7,460 in 2022, suggesting that other factors, such as housing quality improvements or increased demand for rental properties in specific segments of the market, may have influenced rent prices.
In 2023 and 2024, the Ross neighborhood continued to experience growth in average home prices. The average home price reached $220,641 in 2023 and further increased to $237,084 in 2024, representing a 14% rise over two years. This growth occurred despite a significant increase in federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024. These higher interest rates typically make borrowing more expensive, yet the continued rise in home prices suggests strong demand for housing in the Ross neighborhood.
Looking ahead, predictive models forecast a continued upward trend in both average home prices and rent prices over the next five years. Average home prices are expected to increase by approximately 5-7% annually, potentially reaching around $315,000 by 2029. Average rent prices are projected to rise at a more modest rate of 3-4% per year, potentially reaching approximately $1,250 per month by 2029.
In summary, the Ross neighborhood has experienced a significant shift towards homeownership over the past decade, accompanied by substantial increases in average home prices. Despite fluctuations in federal interest rates, local factors appear to have played a crucial role in shaping the housing market. The continued rise in both home prices and rent prices, even in the face of population decline and higher interest rates, suggests a robust and desirable housing market in the Ross neighborhood. These trends indicate a potentially strong investment opportunity for homebuyers and property investors in the coming years.
