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Parsons, PA: Home Values Soar Amid Steady Ownership Rates
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Parsons, a neighborhood in Wilkes-Barre, Pennsylvania, has experienced significant changes in its housing market over the past decade. Despite maintaining a relatively stable homeownership rate of around 60%, the area has seen substantial increases in average home prices and rent. This analysis examines the trends in homeownership, property values, and rental market dynamics from 2013 to 2024.
The homeownership rate in Parsons has remained relatively consistent, fluctuating between 58% and 62% from 2013 to 2022. However, average home prices have shown a marked upward trend during this period. In 2013, the average home price was $73,467, which increased steadily to reach $129,510 by 2022, representing a 76% increase over nine years. This trend indicates that while the proportion of homeowners remained stable, the value of owned properties appreciated considerably.
Federal interest rates have played a role in shaping homeownership trends in Parsons. From 2013 to 2016, when interest rates were historically low (0.11% to 0.40%), homeownership rates remained stable at around 59-60%. As interest rates began to rise more significantly from 2017 (1.00%) to 2019 (2.16%), homeownership rates showed slight increases, reaching 60% in 2018 and 2019. This suggests that some residents may have been motivated to purchase homes before interest rates potentially increased further.
Renter percentages in Parsons have mirrored homeownership rates, fluctuating between 38% and 42% from 2013 to 2022. Average rent prices have generally increased during this period, rising from $703 in 2013 to $828 in 2022, a 17.8% increase. Notably, there was a significant jump in average rent from $766 in 2014 to $827 in 2015, followed by a slight decrease to $775 in 2016. The population growth from 3,669 in 2013 to 4,591 in 2022 may have contributed to the overall upward pressure on rent prices.
In 2023, the average home price in Parsons reached $139,317, continuing the upward trend observed in previous years. As of 2024, the average home price has further increased to $160,748, marking a substantial 15.4% rise from the previous year. This significant jump coincides with higher federal interest rates, which stood at 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact affordability and future homeownership rates in the neighborhood.
Looking ahead, predictive models suggest that average home prices in Parsons are likely to continue their upward trajectory over the next five years, potentially reaching around $200,000 by 2029 if current trends persist. Average rent prices are also expected to increase, albeit at a more moderate pace, potentially approaching $950 per month by 2029. However, these projections may be influenced by various factors including economic conditions, local development, and changes in federal interest rates.
In summary, Parsons has demonstrated resilience in maintaining stable homeownership rates despite significant increases in average home prices. The neighborhood has experienced consistent population growth, which has likely contributed to rising housing costs. The recent sharp increase in average home prices, coupled with higher interest rates, may present challenges for future homebuyers in the area. As Parsons continues to evolve, the interplay between homeownership rates, housing prices, and rental market dynamics will be crucial in shaping the neighborhood's residential landscape.
