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Rising Home Values and Ownership in Nanticoke: A Coal Mining Town's Housing Evolution
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Nanticoke, located in Pennsylvania, is a small urban area with a rich history rooted in coal mining. Over the past decade, this city has experienced notable shifts in homeownership rates and housing market dynamics. The overall trend shows an increase in homeownership, fluctuating average home prices, and varying average rent prices.
From 2013 to 2022, Nanticoke saw a significant increase in homeownership rates. In 2013, 54% of residents owned their homes, while by 2022, this figure had risen to 60%. This 6 percentage point increase coincided with fluctuations in average home prices. In 2013, the average home price was $73,199, which decreased to $70,373 by 2017, before rebounding strongly to reach $118,801 in 2022. This represents a substantial 62.3% increase in average home prices over the nine-year period, despite some initial declines.
The relationship between federal interest rates and homeownership rates in Nanticoke demonstrates an interesting pattern. As interest rates remained historically low from 2013 to 2021, ranging from 0.08% to 1.83%, homeownership rates steadily increased. This aligns with the general trend of lower interest rates encouraging homeownership due to more affordable financing options. However, it's worth noting that homeownership continued to rise even as interest rates began to increase more sharply in 2022, reaching 1.68%.
Regarding rental trends, the percentage of renters in Nanticoke decreased from 46% in 2013 to 40% in 2022. During this period, average rent prices showed some volatility. Starting at $709 in 2013, average rents peaked at $749 in 2017 before declining to $646 in 2022. This represents a 8.9% decrease in average rent over the nine-year span, contrasting with the rising homeownership rates and home prices.
In 2023 and 2024, Nanticoke continued to experience growth in the housing market. The average home price rose to $124,598 in 2023 and further increased to $130,816 in 2024, representing a 10.1% increase over two years. This occurred despite federal interest rates climbing to 5.02% in 2023 and 5.33% in 2024, which are significantly higher than the previous decade's rates.
Looking ahead, predictive models suggest that average home prices in Nanticoke may continue to rise over the next five years, potentially reaching around $150,000 by 2029 if current trends persist. Average rent prices, which have been more volatile, could stabilize or show moderate increases, potentially reaching about $700 per month in the same timeframe.
In summary, Nanticoke has experienced a notable shift towards homeownership over the past decade, with a 6 percentage point increase from 2013 to 2022. This trend occurred alongside significant growth in average home prices, particularly from 2017 onwards. The rental market, conversely, saw a decrease in both the percentage of renters and average rent prices. These trends have persisted even in the face of rising interest rates, suggesting a strong local demand for homeownership in Nanticoke.
