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Westover's Shifting Housing Landscape: Declining Home Values Amidst Rising Rents
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Westover, a small community in Pennsylvania, has experienced significant demographic shifts over the past decade, particularly in its housing market. The city has witnessed notable trends in homeownership rates and changes in average home and rent prices, reflecting broader economic patterns and local market conditions. Homeownership rates in Westover have shown a gradual decline over the years. In 2013, 86% of housing units were owner-occupied. This percentage remained stable until 2016 but began to decrease thereafter. By 2022, the homeownership rate had fallen to 81%, representing a 5 percentage point decrease over nine years. This trend coincides with fluctuations in average home prices, though specific historical data for home values is limited.
Federal interest rates have played a significant role in shaping homeownership trends. From 2013 to 2016, when homeownership rates were at their highest (86%), interest rates were relatively low, ranging from 0.11% to 0.40%. As interest rates began to rise more substantially from 2017 onwards, reaching 1.83% in 2018 and 2.16% in 2019, we observe a corresponding decrease in homeownership rates to 84%. This aligns with the well-established trend that lower interest rates generally encourage homeownership due to more affordable financing options.
Conversely, the percentage of renter-occupied housing units has increased over time. In 2013, only 13% of housing units were renter-occupied. This figure rose to 19% by 2022, indicating a growing trend towards renting in the borough. Average rent prices have also shown an upward trajectory. In 2013, the average rent was $534, which increased to $725 by 2022, representing a 35.8% increase over nine years. This rise in rent prices occurred despite fluctuations in the borough's population, which declined from 475 in 2013 to 389 in 2022.
In 2023 and 2024, significant changes occurred in the housing market. The average home price in Westover in 2023 was $96,120, which then decreased to $85,986 in 2024, marking a 10.5% decline. This drop coincides with a sharp increase in federal interest rates, which rose to 5.02% in 2023 and further to 5.33% in 2024. These high interest rates likely contributed to the cooling of the housing market and the decrease in average home prices.
Looking ahead, we can forecast potential trends for the next five years. Given the current high interest rate environment, we might expect a continued softening in home prices in the short term. However, if interest rates stabilize or decrease, we could see a gradual recovery in home prices. For rent prices, the trend suggests continued increases, albeit potentially at a slower rate due to economic pressures. We might anticipate average rent to reach around $800-$850 by 2029 if current trends persist.
In summary, Westover has experienced a shift from homeownership to renting over the past decade, with homeownership rates declining from 86% to 81%. This trend has been influenced by rising interest rates and increasing home prices. Simultaneously, average rent prices have shown steady growth, rising by over 35% from 2013 to 2022. The recent sharp increase in interest rates has led to a notable decrease in average home prices, setting the stage for potential market adjustments in the coming years.
