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Zip Code 18360: Rising Home Values and Shifting Ownership Patterns in Arlington Heights, Pennsylvania
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
Arlington Heights, Pennsylvania, zip code 18360, is a community that has experienced notable shifts in its housing market over the past decade. This analysis examines the trends in homeownership rates, average home prices, and average rent prices, revealing interesting patterns and potential future directions. The homeownership rate in Arlington Heights has shown some fluctuation but has generally remained stable, hovering around 70% throughout the observed period. In 2013, the homeownership rate stood at 75%, but it experienced a gradual decline to 68% by 2016. Since then, it has rebounded slightly, reaching 71% in 2022. This trend in homeownership rates appears to have an inverse relationship with average home prices. As average home prices increased from $176,287 in 2013 to $312,503 in 2022, a significant 77% rise, the homeownership rate experienced slight downward pressure.
Federal interest rates have played a role in shaping homeownership trends in Arlington Heights. The period of historically low interest rates from 2013 to 2021, ranging from 0.08% to 0.4%, coincided with relatively stable homeownership rates. However, as interest rates began to rise more sharply in 2022 to 1.68%, we saw a slight increase in homeownership to 71%, possibly due to buyers rushing to purchase homes before rates climbed further.
Renter percentages in Arlington Heights have shown a corresponding inverse relationship to homeownership rates. The renter population increased from 25% in 2013 to a peak of 32% in 2016, before settling at 29% in 2022. Interestingly, average rent prices have not consistently followed this trend. Average rent prices fluctuated, peaking at $1,242 in 2013, dropping to $1,060 in 2020, and then rising again to $1,059 in 2022. This suggests that factors beyond simple supply and demand, such as local economic conditions or housing policies, may be influencing rent prices in the area.
Looking at the most recent data, average home prices in Arlington Heights continued their upward trajectory, reaching $326,849 in 2023 and further increasing to $337,816 in 2024. This represents a 4.6% year-over-year increase from 2023 to 2024. Simultaneously, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024, levels not seen since before the 2008 financial crisis. These higher interest rates could potentially slow down the rapid home price appreciation seen in recent years.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in Arlington Heights will continue to rise, albeit at a more moderate pace due to higher interest rates. By 2029, average home prices could reach approximately $380,000 to $400,000, representing a 12-18% increase from 2024 levels. Average rent prices are expected to follow a similar upward trend, potentially reaching $1,300 to $1,400 per month by 2029, reflecting a 23-32% increase from 2022 levels.
In summary, Arlington Heights has experienced a relatively stable homeownership rate despite significant increases in average home prices. The inverse relationship between homeownership rates and average home prices, coupled with the impact of changing federal interest rates, highlights the complex dynamics of the local housing market. As we move forward, the community may see a moderation in home price growth and a continued upward trend in rent prices, potentially influenced by the higher interest rate environment and ongoing demographic shifts.
