Housing Costs Decrease for Owners, Increase for Renters

By Hope Walborn | July 8, 2024 | 2 min. read

Housing costs have decreased for owners, but increased for renters, according to the Pennsylvania Housing Finance Agency’s 2023 Pennsylvania Comprehensive Housing Study.

Housing Prices

In 2022, 17,000 new single-family homes were constructed in the New England region, with 44% having a contract price of $500,000 or above. The share of new homes with contract prices above $500,000 has steadily increased since 2002 (4%) and significantly jumped since 2019 (25%). In comparison, the share of units in every price range below $200,000 has decreased since 2002.

While new homes are increasing in price, values for all homes are also increasing. In 2021, the median home was valued at $241,000, compared to $180,366 in 2015, adjusted for inflation.

According to PAR’s housing market report, the median price of homes in 2017 was $140,000, compared to $213,699 in 2023.

Growth in the value of homes especially grew between January 2020 and January 2023, increasing by 35% to $254,753.

In Pennsylvania, prices rose 26% from January 2020 and January 2023 to $195,123.

As of 2022, homeowners had slightly lower inflation-adjusted monthly housing costs ($1,150) than in 2010 ($1,181). Housing costs consumed 15% of household income for the median owner-occupant household.

Rents

Median gross rent in 2022 was $1,116, compared to $1,036 (adjusted for inflation). Data suggests renters looking for apartments today are finding even higher median rents. In January 2024, the median rent was $1,251.

The study notes that the supply of low-cost rental units is shrinking proportionally to the supply of rental units. In recent years, rents have increased most for efficiency and five-plus-bedroom units, and rents consume a larger share of households’ incomes. Gross rent has wavered at around 29-30% of the median renter household’s income between 2010 and 2022. This makes renting in Pennsylvania on the verge of unaffordable. Affordable housing is commonly defined as consuming no more than 30% of a household’s income.

Learn  more details about housing and renting costs by reading the PHFA’s full report.

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