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Rising Home Values and Fluctuating Ownership Rates in Zip Code 18701: Wilkes-Barre's Urban Transformation
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 18701, located in Wilkes-Barre, Pennsylvania, has experienced significant changes in its housing market over the past decade. This urban area has seen fluctuations in homeownership rates and substantial increases in both average home prices and average rent prices. The homeownership rate in zip code 18701 has shown slight variations over the years, with a general trend towards a modest increase. In 2013, the homeownership rate was 7%, which gradually rose to 13% by 2020. However, it slightly decreased to 11% in 2022. This overall upward trend in homeownership coincides with a substantial increase in average home prices. From 2014 to 2022, average home prices in the area rose from $61,241 to $116,332, representing a remarkable 90% increase over eight years.
The relationship between federal interest rates and homeownership rates in this zip code shows some correlation. As interest rates remained low between 2013 and 2016 (ranging from 0.09% to 0.4%), homeownership rates increased from 7% to 9%. However, even as interest rates rose to 2.16% by 2019, homeownership continued to climb, reaching 13% in 2020. This suggests that while interest rates play a role, other local factors may have a stronger influence on homeownership in this area.
Renter percentages in zip code 18701 have remained consistently high, although showing a slight decrease from 93% in 2013 to 89% in 2022. Despite this minor decline in the proportion of renters, average rent prices have shown significant volatility. Average rent increased from $634 in 2013 to $829 in 2019, then dropped to $681 in 2020, before surging to $935 in 2021. In 2022, it decreased again to $673. These fluctuations occurred while the population steadily grew from 2,472 in 2013 to 3,284 in 2022, suggesting that other factors beyond population growth are influencing rent prices.
The most recent data for 2023 and 2024 shows a continuation of the upward trend in average home prices. In 2023, the average home price reached $122,920, and in 2024, it further increased to $133,137. This represents a 14.4% increase over two years. Concurrently, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024, which could potentially impact future homeownership rates and housing market dynamics.
Looking ahead, based on the historical trends and current market conditions, we can predict that average home prices in zip code 18701 will continue to rise over the next five years, albeit potentially at a more moderate pace due to higher interest rates. Average rent prices may continue to show volatility but are likely to trend upward overall, driven by the area's consistently high renter population and increasing housing costs.
In summary, zip code 18701 has experienced a gradual increase in homeownership rates alongside substantial growth in average home prices. The rental market remains dominant but has seen fluctuating average rent prices. The area's housing market has shown resilience and growth, with recent years marking significant increases in property values despite rising interest rates. These trends suggest a dynamic and evolving housing market in this Wilkes-Barre zip code.
