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Rising Home Values and Ownership in Zip Code 18424: Big Bass Lake'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 18424, located in Big Bass Lake, Pennsylvania, has experienced notable shifts in homeownership and housing market dynamics over the past decade. This area, known for its scenic lakeside setting, has seen a general trend of increasing homeownership rates coupled with fluctuating average home prices and rent costs.
The ownership percentage in zip code 18424 has shown a steady upward trend, rising from 85% in 2013 to 89% in 2022. This increase in homeownership coincides with a significant rise in average home prices, which grew from $121,274 in 2013 to $205,531 in 2022, representing a 69.5% increase over this period. The most dramatic surge occurred between 2020 and 2022, with average home prices jumping from $134,616 to $205,531, a 52.7% increase in just two years.
Federal interest rates have played a crucial role in shaping homeownership trends in the area. The period of historically low interest rates from 2013 to 2021, ranging from 0.08% to 0.4%, likely contributed to the increase in homeownership. This environment of cheap financing made homeownership more accessible, potentially explaining the rise from 85% ownership in 2013 to 90% in 2021. However, the sharp increase in interest rates to 1.68% in 2022 may have influenced the slight dip in homeownership to 89% that year.
Conversely, the renter percentage in zip code 18424 has decreased from 15% in 2013 to 11% in 2022. Interestingly, average rent prices have shown volatility during this period. They peaked at $1,197 in 2016 before declining to a low of $903 in 2019. Since then, average rent has increased moderately to $937 in 2022. This trend suggests that despite lower rental availability, rent prices have not consistently increased, possibly due to local economic factors or housing policies.
In 2023 and 2024, the housing market in zip code 18424 continued its upward trajectory. Average home prices reached $222,765 in 2023 and further increased to $244,381 in 2024, representing a 18.9% rise over two years. This growth occurred despite a significant increase in federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024. These higher rates typically make mortgages more expensive, yet the local market has shown resilience in maintaining price growth.
Looking ahead, predictive models suggest that the robust growth in average home prices is likely to continue, albeit at a potentially slower pace due to the higher interest rate environment. Average home prices could potentially reach around $280,000 to $300,000 in the next five years. Rent prices, which have been more volatile, may see moderate increases, possibly reaching an average of $1,000 to $1,100 per month in the same period, assuming current trends persist.
In summary, zip code 18424 has demonstrated a strong trend towards homeownership, with significant growth in average home prices, particularly in recent years. Despite rising interest rates, the housing market has shown resilience and continued appreciation. The rental market, while shrinking in terms of occupancy, has shown more moderate price changes. These trends suggest a robust and desirable housing market in this Pennsylvania lakeside community, with a clear preference for homeownership among residents.
