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Average Home Values and Ownership in Zip Code 18505: Scranton's Real Estate Resilience
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 18505 is located in Scranton, Pennsylvania, known for its rich industrial history and as the setting for the popular TV show "The Office." This area has experienced fluctuations in homeownership rates and property values over the past decade, with recent trends showing a slight increase in owner-occupied housing and rising average home prices.
The homeownership rate in zip code 18505 has remained relatively stable, with minor fluctuations between 52% and 56% from 2013 to 2022. In 2013, the ownership rate stood at 55%, gradually decreasing to 52% in 2019 and 2020, before rebounding to 56% in 2022. Interestingly, this slight increase in homeownership coincided with a significant rise in average home prices. From 2013 to 2022, average home prices in the area increased by approximately 50%, from $90,532 to $135,794.
The relationship between federal interest rates and homeownership rates in this zip code shows some correlation. For instance, 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 sharply in 2022 to 1.68%, we saw a slight increase in homeownership to 56%, possibly due to buyers rushing to secure mortgages before rates climbed further.
Renter percentages in zip code 18505 have inversely mirrored homeownership rates, ranging from 44% to 48% between 2013 and 2022. The average rent prices have shown an overall upward trend during this period. In 2013, the average rent was $752, which increased to $793 in 2022, representing a 5.5% increase. The highest average rent was recorded in 2021 at $822. It's worth noting that the population in this zip code has remained relatively stable, fluctuating between 19,296 and 20,110 residents during this period, which may have contributed to the steady demand for rental properties.
Looking at the most recent data, average home prices in zip code 18505 continued their upward trajectory, reaching $147,822 in 2023 and $159,751 in 2024. This represents a significant increase of 17.7% from 2022 to 2024. Concurrently, federal interest rates have risen substantially, reaching 5.02% in 2023 and 5.33% in 2024, which could potentially impact future homebuying activity in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 18505 will continue to rise, potentially reaching around $190,000 by 2029. This projection is based on the consistent upward trend observed in recent years. For average rent prices, we expect a more moderate increase, potentially reaching approximately $900 per month by 2029, assuming the current growth rate continues.
In summary, zip code 18505 in Scranton has demonstrated resilience in its housing market, with a recent uptick in homeownership rates despite rising home prices. The area has experienced steady growth in both average home values and rent prices, with projections indicating continued appreciation in the coming years. The interplay between federal interest rates, homeownership rates, and property values will likely continue to shape the housing landscape in this Pennsylvania community.
