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Average Home Values and Ownership in Zip Code 18706: A Decade of Growth in Laurel Run, Pennsylvania
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 18706, located in Laurel Run, Pennsylvania, has experienced notable changes in homeownership and housing prices over the past decade. This area has witnessed fluctuations in both average home values and rental rates, while maintaining relatively stable homeownership rates with slight variations in recent years.
The homeownership rate in zip code 18706 has shown a minor decline, decreasing from 70% in 2014 to 68% by 2022. This trend coincided with significant changes in average home prices. In 2010, the average home price was $99,875, which decreased to $84,419 by 2016, representing a substantial drop of 15.5% over six years. However, from 2016 onwards, there was a remarkable upward trend in average home prices. By 2022, the average home price had risen to $137,049, marking a significant increase of 62.3% from the 2016 low.
Federal interest rates have played a role in influencing homeownership trends in the area. The period from 2010 to 2015 was characterized by historically low interest rates, ranging from 0.09% to 0.18%. Despite these favorable borrowing conditions, homeownership rates remained relatively stable, suggesting that other factors, such as local economic conditions or housing supply, may have had a more significant impact on homeownership decisions in this zip code.
Renter percentages in zip code 18706 have shown a slight increase, rising from 30% in 2014 to 32% in 2022. This trend has been accompanied by fluctuations in average rent prices. In 2013, the average rent was $699, which decreased to $650 by 2017, representing a 7% drop. However, rent prices then increased, reaching $731 in 2018, before settling at $679 in 2022. These changes in rent prices and renter percentages occurred against a backdrop of relatively stable population, which stood at 16,566 in 2022, only slightly lower than the 16,777 recorded in 2010.
The most recent data indicates that the average home price in zip code 18706 continued its upward trajectory, reaching $145,702 in 2023 and further increasing to $154,034 in 2024. This represents a 12.4% increase from 2022 to 2024. Concurrently, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024, which may impact future homeownership trends in the area.
Applying predictive models to forecast trends for the next five years, average home prices in zip code 18706 are expected to continue their upward trajectory, potentially reaching around $180,000 by 2029. Average rent prices are also likely to increase, albeit at a more moderate pace, potentially reaching approximately $750 per month by 2029.
In summary, zip code 18706 has experienced a gradual shift towards slightly higher renter percentages, coupled with significant growth in average home prices, particularly since 2016. Despite fluctuations in average rent prices, the area has maintained a relatively stable population. The recent sharp increase in federal interest rates, combined with rising home prices, may present challenges for potential homebuyers in the coming years, potentially further influencing the balance between homeownership and renting in this Pennsylvania community.
