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Rising Home Values and Stable Ownership in Zip Code 18407: A Former Coal Mining Area's Real Estate Trends
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 18407, located in Carbondale, Pennsylvania, has experienced notable shifts in homeownership rates and housing prices over the past decade. This area, with a population of 14,725 in 2022, has seen fluctuations in both owner-occupied and rental properties, alongside changes in average home and rent prices.
The homeownership rate in zip code 18407 has remained relatively stable, with slight fluctuations between 64% and 67% from 2013 to 2022. Despite this stability, average home prices have shown a more dynamic trend. In 2013, the average home price was $89,450, which declined to a low of $84,421 in 2017. However, since then, there has been a significant upward trend, with average home prices reaching $133,936 by 2022, representing a 58.7% increase over five years. This rise in home prices did not significantly impact homeownership rates, which remained around 65% in 2022.
Federal interest rates have played a role in homeownership trends in zip code 18407. The period of extremely low interest rates from 2013 to 2016 (ranging from 0.09% to 0.40%) coincided with relatively stable homeownership rates. As interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, there was a slight decrease in homeownership from 66% in 2017 to 65% in 2022. This suggests that while rising interest rates may have had some impact, other local factors likely played a more significant role in maintaining relatively stable homeownership rates.
Renter percentages in zip code 18407 have shown minor fluctuations, ranging from 33% to 36% between 2013 and 2022. Average rent prices have generally increased over this period, albeit with some variability. In 2013, the average rent was $721, which increased to $800 by 2018, representing an 11% rise. However, there was a slight decrease to $737 by 2022. The population of the area remained relatively stable during this period, suggesting that changes in rent prices were likely influenced by local economic factors rather than significant population shifts.
In 2023 and 2024, zip code 18407 experienced continued growth in average home prices. The average home price reached $144,417 in 2023 and further increased to $149,636 in 2024, representing a 7.8% and 11.7% increase from 2022, respectively. This growth occurred despite the federal interest rate rising to 5.02% in 2023 and 5.33% in 2024, indicating strong local demand for housing in the area.
Looking ahead, based on the observed trends, it's projected that average home prices in zip code 18407 will continue to rise over the next five years, albeit potentially at a more moderate pace due to higher interest rates. Average rent prices are also expected to increase, following the general upward trend seen in recent years, but may be tempered by the area's stable population and homeownership rates.
In summary, zip code 18407 has demonstrated resilience in homeownership rates despite fluctuations in average home prices and interest rates. The area has seen significant appreciation in home values, particularly since 2017, with this trend continuing into 2024. Rental markets have shown more modest growth, with some recent stabilization. These trends suggest a dynamic housing market in Carbondale, balancing homeownership opportunities with rental options.
