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Average Home Values and Ownership in Zip Code 18510: Trends in Scranton's "The Office" Setting
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 18510, located in Scranton, Pennsylvania, has experienced significant shifts in homeownership, average home prices, and average rent prices over the past decade. This urban area, known for its industrial heritage and as the setting for the popular TV show "The Office," has seen a general trend towards increased renting and fluctuating property values.
The homeownership rate in zip code 18510 has shown a gradual decline from 2013 to 2022. In 2013, 46% of housing units were owner-occupied, but by 2022, this figure had decreased to 43%. This trend coincides with notable changes in average home prices. The average home price in 2013 was $94,744, which increased to $142,884 by 2022, representing a substantial 50.8% increase over this period. Despite this rise in home values, the decline in homeownership suggests that other factors, such as affordability or changing preferences, may be influencing residents' decisions to rent rather than buy.
Federal interest rates have played a role in shaping homeownership trends in zip code 18510. The period from 2013 to 2016 saw historically low interest rates, hovering around 0.1% to 0.4%. During this time, homeownership rates remained relatively stable, ranging from 45% to 46%. However, as interest rates began to rise more significantly from 2017 onwards, reaching 1.68% in 2022, homeownership rates showed a slight decline, dropping to 43%. This pattern aligns with the general principle that higher interest rates can make mortgages less affordable, potentially discouraging home purchases.
The renter population in zip code 18510 has grown from 54% in 2013 to 57% in 2022. This increase in renters has been accompanied by fluctuations in average rent prices. In 2013, the average rent was $905, which increased to $962 by 2021, representing a 6.3% rise. However, there was a slight decrease to $901 in 2022. The population in the zip code has also fluctuated, peaking at 13,731 in 2016 before declining to 13,439 in 2022. These changes in population and renter percentages suggest a dynamic housing market with shifting preferences towards renting.
In 2023 and 2024, the housing market in zip code 18510 has shown continued growth. The average home price reached $159,482 in 2023 and further increased to $170,299 in 2024, representing a 19.2% rise from 2022 to 2024. This significant increase has occurred despite a sharp rise in federal interest rates, which reached 5.02% in 2023 and 5.33% in 2024. These high interest rates typically make borrowing more expensive, yet the housing market in this zip code appears to be maintaining strong growth.
Looking ahead, predictive models suggest that the upward trend in average home prices is likely to continue over the next five years, albeit potentially at a slower rate due to the high interest rate environment. Average rent prices are also expected to increase moderately, driven by the growing preference for renting and the overall rise in property values. However, if interest rates begin to decrease, it could potentially slow or reverse the trend towards renting, as homeownership might become more affordable for some residents.
In summary, zip code 18510 has experienced a shift towards renting, with homeownership rates declining from 46% to 43% between 2013 and 2022. Average home prices have shown significant growth, particularly in recent years, rising from $94,744 in 2013 to $170,299 in 2024. Average rent prices have also increased overall, although with some fluctuations. These trends, coupled with changing interest rates and population dynamics, paint a picture of a housing market in transition, with a growing preference for renting despite rising property values.
