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Rising Home Values and Ownership Fluctuations in Scranton, The Office's Hometown
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Scranton, Pennsylvania, famously known as the setting for the hit TV show "The Office," is a city with a rich industrial history and a dynamic real estate market. Over the past decade, Scranton has experienced fluctuations in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market conditions.
The homeownership rate in Scranton has shown notable variability from 2013 to 2022. In 2013, the homeownership rate stood at 52%, but by 2017, it had decreased to 45%. However, the rate rebounded to 54% in 2021 before settling at 50% in 2022. This fluctuation coincides with changes in average home prices. The average home price in Scranton dropped from $123,537 in 2010 to its lowest point of $90,815 in 2017, aligning with the lowest homeownership rate. As home prices began to rise, reaching $145,102 in 2022, the homeownership rate also showed signs of recovery.
Federal interest rates have played a significant role in shaping homeownership trends in Scranton. The period of historically low interest rates from 2010 to 2021, with rates often below 1%, coincided with fluctuations in homeownership. Despite low rates, the initial decline in homeownership from 2013 to 2017 may be attributed to lingering effects of the 2008 financial crisis and local economic factors. However, as the economy improved and interest rates remained low, homeownership began to recover, reaching 54% in 2021 when the federal interest rate was at a mere 0.08%.
Renter percentages in Scranton have inversely mirrored homeownership rates, peaking at 55% in 2017 when homeownership was at its lowest. Average rent prices have shown a steady upward trend, increasing from $695 in 2013 to $966 in 2022, representing a 39% increase over this period. This rise in rent prices occurred despite fluctuations in the city's population, which ranged from 75,278 in 2014 to 77,597 in 2017, before settling at 75,838 in 2022.
In 2023 and 2024, Scranton's real estate market continued its upward trajectory. The average home price in 2023 reached $155,763, a 7.3% increase from 2022. In 2024, it further climbed to $164,904, marking a 5.9% year-over-year growth. This price appreciation occurred despite the federal interest rate rising to 5.02% in 2023 and 5.33% in 2024, indicating strong demand in the local housing market.
Looking ahead, based on recent trends, it's projected that average home prices in Scranton will continue to rise over the next five years, potentially reaching around $190,000 by 2029. Average rent prices are also expected to increase, possibly surpassing $1,100 per month within the same timeframe. These projections assume continued economic stability and gradual population growth in the region.
In summary, Scranton's real estate market has demonstrated resilience and growth, particularly in recent years. The city has overcome a period of declining home values and homeownership rates to enter a phase of steady appreciation. The interplay between federal interest rates, home prices, and rent costs has shaped a dynamic market environment. As Scranton continues to evolve, its housing market is poised for further growth, presenting opportunities and challenges for both homeowners and renters in the coming years.
