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Rising Home Values and Ownership in Zip Code 18218: Coaldale's Resilient Housing Market
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 18218, located in Coaldale, Pennsylvania, has experienced significant shifts in homeownership rates and housing prices over the past decade. This small community, with a population of 2,302 in 2022, has seen notable fluctuations in its real estate market and demographic composition.
The homeownership rate in zip code 18218 has shown an overall increasing trend, rising from 64% in 2017 to 78% in 2022. This substantial increase in homeownership coincides with a remarkable surge in average home prices. In 2017, the average home price was $38,566, which steadily climbed to $64,556 by 2022, representing a 67.4% increase over five years. This trend suggests a growing preference for homeownership in the area, possibly driven by favorable market conditions and increasing property values.
The relationship between federal interest rates and homeownership rates in this zip code presents an interesting dynamic. Despite the federal interest rate rising from 1% in 2017 to 1.68% in 2022, the homeownership rate in zip code 18218 continued to increase. This trend contradicts the general expectation that higher interest rates might deter homeownership. It's possible that local factors, such as job market improvements or changing demographics, played a more significant role in driving homeownership than national interest rate trends.
Renter percentages in zip code 18218 have correspondingly decreased as homeownership rates rose, dropping from 36% in 2017 to 22% in 2022. Interestingly, average rent prices have shown volatility during this period. In 2017, the average rent was $581, which increased to $851 in 2021, representing a 46.5% jump. However, it then decreased to $677 in 2022, a 20.4% drop in just one year. This fluctuation in rent prices, coupled with the decreasing renter population, suggests a complex rental market possibly influenced by local economic factors and the shift towards homeownership.
In 2023 and 2024, the average home prices in zip code 18218 continued their upward trajectory, reaching $70,815 in 2023 and $79,953 in 2024. This represents a significant 23.8% increase from 2022 to 2024. Notably, this price surge occurred despite a sharp rise in federal interest rates, which jumped to 5.02% in 2023 and 5.33% in 2024. This continued price appreciation in the face of higher borrowing costs indicates strong demand for housing in the area.
Looking ahead, based on the historical data and current trends, we can project that average home prices in zip code 18218 may continue to rise over the next five years, potentially reaching around $100,000 by 2029. Rent prices, which have shown more volatility, might stabilize and gradually increase, possibly reaching an average of $750-$800 per month in the same timeframe. However, these projections are subject to various economic factors and local market conditions.
In summary, zip code 18218 has experienced a significant shift towards homeownership, accompanied by substantial increases in average home prices. The area has demonstrated resilience in its housing market, with home values appreciating even in the face of rising interest rates. The rental market, while more volatile, has also shown overall growth. These trends suggest a dynamic and evolving real estate landscape in this Pennsylvania borough, with a strong inclination towards homeownership and property investment.
