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West Walnut/Union Terrace: Rising Home Values and Dynamic Ownership in Allentown's Resilient Neighborhood
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
West Walnut/Union Terrace, a neighborhood in Allentown, Pennsylvania, has experienced significant changes in its real estate market and demographics over the past decade. This area has seen notable shifts in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market conditions.
The neighborhood has witnessed a decrease in homeownership rates, falling from 38% in 2015 to 35% in 2022. This trend has coincided with a substantial increase in average home prices, which rose from $98,364 in 2015 to $207,448 in 2022, representing a 111% increase over seven years. This inverse relationship suggests that rising home prices may have made homeownership less attainable for many residents.
Federal interest rates have played a crucial role in shaping homeownership trends. From 2015 to 2020, interest rates remained relatively low, ranging from 0.13% to 2.16%. During this period, homeownership rates fluctuated between 29% and 38%. However, as interest rates began to rise sharply in 2022 to 1.68%, the homeownership rate increased slightly to 35%, possibly due to buyers rushing to secure mortgages before rates climbed further.
Renter percentages in West Walnut/Union Terrace have generally increased, rising from 62% in 2015 to 65% in 2022. This trend aligns with the growth in average rent prices, which increased from $905 in 2015 to $930 in 2022. However, it is worth noting that rent prices peaked at $1,036 in 2021 before slightly decreasing. The neighborhood's population has also grown during this period, from 7,858 in 2015 to 10,223 in 2022, potentially contributing to the increased demand for rental properties.
In 2023 and 2024, the neighborhood experienced continued growth in average home prices, reaching $220,278 in 2023 and $234,205 in 2024. This represents a 12.9% increase from 2022 to 2024. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, potentially impacting homebuying decisions and affordability.
Looking ahead, predictive models suggest that average home prices in West Walnut/Union Terrace may continue to rise over the next five years, potentially reaching around $280,000 by 2029. Average rent prices are also expected to increase, possibly surpassing $1,100 per month within the same timeframe. These projections are based on historical trends and current market conditions.
In summary, West Walnut/Union Terrace has experienced a shift towards a more renter-dominated market, with rising home prices potentially contributing to decreased homeownership rates. The neighborhood has seen significant appreciation in property values and a general upward trend in rent prices. These changes, coupled with population growth and fluctuating interest rates, have shaped a dynamic real estate landscape that continues to evolve.
