Loading Content...
Average Home Values and Ownership in Zip Code 18603: A Decade of Growth in Berwick, Pennsylvania
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Zip code 18603, located in Berwick, Pennsylvania, has shown interesting demographic and housing trends over the past decade. This area has experienced fluctuations in homeownership rates, average home prices, and average rent prices, reflecting broader economic and social changes in the region.
The homeownership rate in zip code 18603 has seen a gradual increase from 68% in 2013 to 74% in 2022. This upward trend in homeownership coincides with a significant rise in average home prices. In 2013, the average home price was $125,386, which steadily increased to $181,876 by 2022, representing a 45% increase over nine years. This correlation suggests that despite rising home prices, more residents have been able to enter the housing market, possibly due to factors such as improved economic conditions or favorable mortgage terms.
Federal interest rates have played a crucial role in shaping homeownership trends. From 2013 to 2016, interest rates remained exceptionally low, hovering around 0.1% to 0.4%. This period coincided with a slight increase in homeownership from 68% to 69%. As interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), homeownership continued to climb, reaching 72% by 2019. This trend suggests that while low interest rates initially supported homeownership, other factors such as job growth or local economic conditions may have sustained the trend even as rates increased.
The renter population in zip code 18603 has experienced a corresponding decline as homeownership increased. The percentage of renters decreased from 32% in 2013 to 26% in 2022. Interestingly, average rent prices have shown volatility during this period. In 2013, the average rent was $661, which increased to $762 by 2017, then fluctuated before reaching $732 in 2022. This represents an overall increase of about 11% in average rent over nine years. The fluctuation in rent prices, coupled with the decreasing renter population, suggests a complex rental market possibly influenced by factors such as housing supply, local economic conditions, and shifting demographics.
In 2023 and 2024, the housing market in zip code 18603 continued to evolve. The average home price rose to $184,569 in 2023 and further increased to $187,473 in 2024, indicating a sustained upward trend in property values. Concurrently, federal interest rates climbed significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homeownership trends and affordability in the area.
Looking ahead, predictive models suggest that average home prices in zip code 18603 are likely to continue their upward trajectory over the next five years, albeit at a potentially slower pace due to higher interest rates. Average rent prices are also expected to increase moderately, reflecting ongoing demand for rental properties despite the trend towards homeownership. However, the rate of increase for both home prices and rents may be tempered by broader economic factors and local market conditions.
In summary, zip code 18603 has demonstrated a clear trend towards increased homeownership and rising property values over the past decade. The area has shown resilience in its housing market, with homeownership rates climbing despite fluctuations in average home prices and federal interest rates. The rental market, while experiencing some volatility, has generally seen an upward trend in prices. These trends reflect a dynamic housing landscape in Berwick, shaped by a combination of local and national economic factors.
