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Average Home Values and Ownership in Zip Code 18018: Bethlehem's Resilient Housing Market
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
Zip code 18018, located in Bethlehem, Pennsylvania, covers an area of 5.22 square miles and has demonstrated interesting trends in homeownership and housing prices over the past decade. This urban area has maintained relatively stable homeownership rates while experiencing significant increases in average home prices and modest growth in rental costs. The homeownership rate in zip code 18018 has remained fairly consistent, ranging between 52% and 55% from 2013 to 2022. In 2013, the ownership rate was 55%, which slightly decreased to 52% by 2022. During this period, average home prices in the area demonstrated a substantial upward trend. In 2013, the average home price was $142,735, which steadily increased to $244,227 by 2022, representing a significant 71% increase over nine years. This trend suggests that despite rising home prices, the proportion of homeowners in the area has remained relatively stable.
Federal interest rates have played a role in homeownership trends in zip code 18018. From 2013 to 2016, when interest rates were at historic lows (ranging from 0.11% to 0.40%), the homeownership rate remained steady at around 52-53%. As interest rates began to rise from 2017 to 2019 (1.00% to 2.16%), there was a slight decrease in homeownership to 52%. However, when interest rates dropped again in 2020 and 2021 (0.38% and 0.08% respectively), the homeownership rate remained stable at 52%, suggesting that other factors beyond interest rates were influencing homeownership decisions in this area.
The renter population in zip code 18018 has shown slight variations, with the percentage of renters ranging from 45% to 48% between 2013 and 2022. In 2013, renters made up 45% of the population, which increased to 48% by 2022. Average rent prices have also shown an upward trend during this period. In 2013, the average rent was $1,057, which increased to $1,108 by 2022, representing a 4.8% increase. It's worth noting that the population in this zip code decreased slightly from 32,715 in 2013 to 31,207 in 2022, which may have influenced the rental market dynamics.
As of 2024, the average home price in zip code 18018 has reached $273,791, showing a continued upward trend from the 2022 figure of $244,227. This represents a 12.1% increase over two years. The federal interest rate in 2024 stands at 5.33%, which is significantly higher than the rates observed in the previous decade. This increase in interest rates may impact homebuying decisions and potentially slow down the rate of price appreciation in the coming years.
Looking ahead, based on the historical trends and current market conditions, we can forecast the following 5-year trends for average home and rent prices in zip code 18018: Average home prices are likely to continue their upward trajectory, albeit at a slower pace due to higher interest rates. We might expect average home prices to reach around $310,000 to $330,000 by 2029. Average rent prices are also expected to increase, potentially reaching $1,250 to $1,350 per month by 2029, assuming a similar growth rate to that observed in recent years.
In summary, zip code 18018 in Bethlehem, Pennsylvania, has demonstrated resilience in homeownership rates despite significant increases in average home prices. The rental market has shown steady growth in both the proportion of renters and average rent prices. The recent rise in interest rates may impact future housing market dynamics, potentially moderating the pace of home price appreciation while maintaining a balance between homeownership and renting in the area.
