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Warren, Pennsylvania: Rising Home Values Amidst Stable Ownership Rates
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
Warren, Pennsylvania, a small urban center in the northwestern part of the state, has experienced notable changes in its housing market over the past decade. With a population of 9,353 in 2022, Warren has seen gradual shifts in homeownership rates and significant fluctuations in average home and rent prices. These trends provide insight into the city's evolving demographic and economic landscape.
The homeownership rate in Warren has shown a slight downward trend, decreasing from 59% in 2013 to 58% in 2022. Despite this marginal decline, average home prices have demonstrated substantial growth. From 2016 to 2022, the average home price in Warren increased from $96,881 to $131,707, representing a remarkable 36% increase over six years.
The relationship between federal interest rates and homeownership rates in Warren aligns with national trends. As interest rates decreased from 2.16% in 2019 to 0.38% in 2020, Warren's homeownership rate increased slightly from 60% to 59%. However, when interest rates rose to 1.68% in 2022, the homeownership rate dipped back to 58%. This pattern suggests that lower interest rates may have encouraged homeownership in Warren, albeit with a slight lag.
The renter population in Warren has shown a complementary trend to homeownership. The percentage of renter-occupied housing units increased from 41% in 2013 to 42% in 2022. Average rent prices have fluctuated over the years, starting at $630 in 2013, rising to $679 in 2017, then decreasing to $632 in 2018. By 2022, the average rent had increased to $652, indicating an overall upward trend despite some volatility.
In 2023 and 2024, Warren's housing market continued to evolve. The average home price reached $137,416 in 2023, a 4.3% increase from 2022, and further rose to $146,402 in 2024, marking a 6.5% increase from the previous year. These increases occurred despite rising interest rates, which reached 5.02% in 2023 and 5.33% in 2024, suggesting a strong local demand for housing in Warren.
Based on observed trends, projections indicate that average home prices in Warren are likely to continue their upward trajectory over the next five years. If the current rate of increase persists, average home prices could potentially reach around $180,000 to $190,000 by 2029. Average rent prices, while more volatile, may also see a gradual increase, potentially reaching $700 to $750 per month in the same timeframe.
In summary, Warren has experienced a slight decrease in homeownership rates over the past decade, coupled with a significant increase in average home prices. The rental market has seen a corresponding increase in the proportion of renters, with average rent prices showing an overall upward trend despite some fluctuations. The city's housing market has demonstrated resilience, with continued price growth even in the face of rising interest rates in recent years.
