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Union Dale, Pennsylvania: Rising Home Values and Ownership Amidst Population Decline
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
Union Dale, located in Pennsylvania, is a small community that has experienced significant demographic shifts over the past decade. The town has seen a notable trend towards increased homeownership, coupled with fluctuations in average home prices and rent rates. This analysis will explore these trends and their implications for the local real estate market. The percentage of owner-occupied housing in Union Dale has shown a steady increase from 2013 to 2022. In 2013, the homeownership rate was 85%, which rose to 89% by 2022. This upward trend in homeownership coincided with changes in average home prices. While specific home price data is not available for earlier years, we can observe that the average home price in 2018 was $208,304, which increased to $278,301 by 2022, representing a significant 33.6% increase over four years.
Federal interest rates play a crucial role in homeownership trends. From 2013 to 2016, interest rates remained very low, ranging from 0.11% to 0.40%. This period of low interest rates likely contributed to the increase in homeownership from 85% in 2013 to 87% in 2016. As interest rates began to rise more significantly from 2017 onwards, reaching 1.68% in 2022, the homeownership rate continued to climb, reaching 89% in 2022. This suggests that other local factors may have been influencing homeownership rates in addition to interest rates.
The renter population in Union Dale has experienced a corresponding decline as homeownership increased. In 2013, 15% of housing units were renter-occupied, which decreased to 11% by 2022. Average rent prices have fluctuated over this period. In 2013, the average rent was $805, which decreased to $632 in 2015, before rising again to $750 in 2018. By 2022, the average rent had decreased slightly to $629. These fluctuations in rent prices occurred against a backdrop of declining population, from 738 residents in 2013 to 573 in 2022, which may have influenced the rental market dynamics.
In 2023 and 2024, Union Dale saw continued growth in average home prices. The average home price reached $279,255 in 2023 and further increased to $284,779 in 2024. This represents a modest but steady appreciation in home values. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, reaching levels not seen since before the 2008 financial crisis.
Looking ahead, based on the observed trends, we can project that average home prices in Union Dale may continue to appreciate, albeit at a more moderate pace. The five-year forecast suggests average home prices could reach approximately $310,000 by 2029. Rent prices, which have shown more volatility, may stabilize or increase slightly, potentially reaching around $700 per month on average by 2029. However, these projections are subject to various economic factors and local market conditions.
In summary, Union Dale has experienced a significant shift towards homeownership over the past decade, with a corresponding decrease in the renter population. Despite fluctuations in the local population and economic conditions, average home prices have shown substantial appreciation. The interplay between federal interest rates, local demographics, and housing market dynamics has shaped these trends, creating a unique real estate landscape in this Pennsylvania borough.
