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Tarentum's Rising Home Values: A Decade of Change in Pennsylvania's Small Borough
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
Tarentum, located in Pennsylvania, is a small community with a rich history dating back to the 18th century. The city has experienced notable shifts in homeownership rates and housing prices over the past decade, reflecting broader economic trends and local dynamics.
The ownership percentage in Tarentum has shown a significant increase in recent years, rising from 45% in 2018 to 66% in 2022. This upward trend in homeownership coincides with fluctuations in average home prices. In 2018, the average home price was $110,884, which dipped slightly to $109,155 in 2019 before steadily climbing to $140,259 by 2022. This represents a 27.2% increase in average home prices over four years, despite the initial dip.
The relationship between federal interest rates and homeownership rates in Tarentum appears to follow the general trend of lower interest rates encouraging homeownership. For instance, as interest rates remained low from 2013 to 2016 (ranging from 0.09% to 0.4%), homeownership rates in Tarentum were relatively stable, hovering around 46-48%. However, as interest rates began to rise more significantly from 2017 onwards, reaching 1.83% in 2018, we see a temporary dip in homeownership to 45% that year. Interestingly, despite further increases in interest rates, homeownership in Tarentum has shown a strong upward trend since 2020, suggesting other local factors may be influencing this trend.
The renter percentage in Tarentum has inversely mirrored the homeownership trend, declining from 55% in 2018 to 34% in 2022. During this period, average rent prices have shown some volatility. In 2018, the average rent was $864, which decreased to $789 in 2019, then rose again to $910 in 2021, before settling at $837 in 2022. This represents a slight overall decrease of 3.1% in average rent from 2018 to 2022, despite the fluctuations. The decline in renter percentage, coupled with the relatively stable rent prices, suggests a shift towards homeownership in the community, possibly driven by factors such as local economic conditions or housing initiatives.
Looking at the most recent data, the average home price in Tarentum was $137,207 in 2023 and increased to $143,168 in 2024. This represents a 4.3% increase in just one year, indicating continued growth in the local housing market. Simultaneously, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024. Despite these higher interest rates, the housing market in Tarentum appears to remain robust.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in Tarentum will continue to rise, albeit at a potentially slower rate due to higher interest rates. We project average home prices could reach approximately $160,000 to $170,000 by 2029. For rent prices, the forecast suggests a moderate increase, potentially reaching an average of $900 to $950 per month by 2029, assuming current economic conditions and local trends persist.
In summary, Tarentum has experienced a significant shift towards homeownership in recent years, with a corresponding decrease in the renter population. Average home prices have shown steady growth, particularly since 2020, despite fluctuations in federal interest rates. The resilience of the local housing market, even in the face of rising interest rates, suggests strong underlying demand for homeownership in this Pennsylvania community.
