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West Lawn: Rising Home Values and Shifting Ownership Trends
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
DATA SOURCE
United States Census Bureau: American Community Survey Data (ACS)
Zillow: Zillow Home Value Index (ZHVI)
West Lawn, Pennsylvania, is a small community located in Berks County. This quaint area, covering just 0.21 square miles, has experienced significant changes in its housing market over the past decade. The ownership percentage has shown a declining trend, while average home prices and average rent prices have generally increased, albeit with some fluctuations.
The homeownership rate in West Lawn has seen a notable decline from 2013 to 2022. In 2013, 75% of residents were homeowners, but by 2022, this figure had dropped to 53%. This downward trend coincides with a steady increase in average home prices. In 2013, the average home price was $117,530, which rose to $197,120 by 2022, representing a 67.7% increase over nine years. This inverse relationship suggests that rising home prices may have made homeownership less attainable for some residents.
Federal interest rates have played a significant role in shaping homeownership trends. From 2013 to 2016, interest rates remained low, ranging from 0.11% to 0.4%, which typically encourages homeownership. However, West Lawn's homeownership rate continued to decline during this period, dropping from 75% to 65%. As interest rates began to rise more sharply from 2017 (1%) to 2019 (2.16%), the homeownership rate fluctuated but maintained a general downward trend, reaching 61% by 2020.
The renter population in West Lawn has grown substantially, from 25% in 2013 to 47% in 2022. This increase in renters has been accompanied by fluctuations in average rent prices. In 2013, the average rent was $1,135, which peaked at $1,252 in 2014 before gradually declining to $1,085 in 2022. The population of West Lawn grew from 1,590 in 2013 to a peak of 1,796 in 2016, before declining to 1,481 in 2022. This population decrease might explain the slight drop in average rent prices in recent years, despite the increasing percentage of renters.
As of 2024, the average home price in West Lawn has reached $226,794, a significant increase from the 2022 figure of $197,120. This represents a 15.1% increase over two years. The federal interest rate in 2024 stands at 5.33%, which is notably higher than the 1.68% rate in 2022. This increase in interest rates could potentially impact future homeownership rates and home prices in the area.
Looking ahead, based on the trends observed, we can project that average home prices in West Lawn will continue to rise over the next five years, potentially reaching around $275,000 by 2029. However, this growth rate may slow down due to the higher interest rates. Average rent prices, which have been declining slightly in recent years, may stabilize or see modest increases, potentially reaching around $1,200 by 2029 as the renter population continues to grow.
In summary, West Lawn has experienced a significant shift in its housing market dynamics over the past decade. The declining homeownership rate, coupled with rising average home prices, suggests a changing landscape for residents. The growing renter population and fluctuating rent prices indicate an evolving rental market. These trends, influenced by factors such as federal interest rates and population changes, are likely to continue shaping the community's housing situation in the coming years.
