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Toughkenamon: Rising Home Values and Ownership Rates in Pennsylvania's Small Community
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
Toughkenamon, located in Pennsylvania, is a small community that has experienced significant changes in its housing market over the past decade. The city, with an area of 2.06 square miles, has seen notable shifts in homeownership rates and fluctuations in average home and rent prices.
The ownership percentage in Toughkenamon has shown a remarkable upward trend, increasing from 45% in 2013 to 71% in 2022. This substantial rise in homeownership coincided with a steady increase in average home prices. In 2013, the average home price was $223,316, which grew consistently to reach $377,193 by 2022, representing a 68.9% increase over nine years.
The relationship between federal interest rates and homeownership rates in Toughkenamon aligns with well-established trends. As interest rates remained low from 2013 to 2020, ranging from 0.09% to 0.38%, homeownership rates increased significantly. This period of low interest rates likely contributed to more affordable financing options, encouraging residents to purchase homes. The homeownership rate rose from 45% in 2013 to 70% in 2020, demonstrating a strong inverse relationship between interest rates and homeownership.
Conversely, the percentage of renters in Toughkenamon has decreased substantially, from 55% in 2013 to 29% in 2022. Despite this decline in the renter population, average rent prices have shown some volatility. The average rent increased from $1,007 in 2013 to a peak of $1,072 in 2015, before declining to $935 in 2022. This trend suggests that factors beyond simple supply and demand, such as local economic conditions or housing policies, may be influencing rent prices in the area.
Looking at the most recent data, the average home price in Toughkenamon continued to rise, reaching $394,858 in 2023 and $410,145 in 2024. This represents a 4.6% increase from 2022 to 2023 and a further 3.9% increase from 2023 to 2024. Interestingly, this growth occurred despite a significant increase in federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024. This suggests a strong local housing market that has remained resilient in the face of higher borrowing costs.
Applying predictive models to forecast 5-year trends, it's anticipated that average home prices in Toughkenamon will continue to rise, albeit at a potentially slower rate due to higher interest rates. Based on historical data and current trends, average home prices could reach approximately $450,000 to $475,000 by 2029. Average rent prices, which have shown more volatility, are projected to stabilize and potentially increase moderately, possibly reaching $1,100 to $1,200 per month by 2029.
In summary, Toughkenamon has experienced a significant shift towards homeownership over the past decade, with a corresponding increase in average home prices. This trend has persisted even in the face of recent interest rate hikes, indicating a robust local housing market. The rental market, while shrinking in terms of occupancy, has shown more variable pricing trends. As the community continues to evolve, these housing market dynamics will play a crucial role in shaping its future development and demographic composition.
