Loading Content...
The Heights: Rising Home Values and Stable Ownership in a Historic Wilkes-Barre Neighborhood
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
The Heights neighborhood in Wilkes-Barre, Pennsylvania, has experienced significant changes in its housing market over the past decade. This community has seen notable shifts in homeownership rates and substantial increases in housing prices, reflecting broader economic trends and local market conditions. From 2013 to 2022, The Heights witnessed fluctuations in homeownership rates. In 2013, 43% of residents owned their homes, but this figure dropped to 38% by 2015. There was a recovery to 46% in 2020, before returning to 43% in 2022. During this same period, average home prices in the neighborhood experienced substantial growth. The average home price in 2013 was $42,527, which remained relatively stable until 2016. From 2017 onwards, there was a marked increase, with prices reaching $95,377 by 2022, representing a 124% increase over this period.
The relationship between federal interest rates and homeownership rates in The Heights shows some correlation. When interest rates were at historic lows between 2013 and 2016 (ranging from 0.09% to 0.40%), homeownership rates paradoxically decreased from 43% to 39%. However, as interest rates began to rise from 2017 to 2019 (1% to 2.16%), homeownership rates stabilized around 39-41%. The sharp drop in interest rates in 2020 (0.38%) coincided with a spike in homeownership to 46%, possibly due to more affordable financing options.
Renter percentages in The Heights have generally mirrored the inverse of homeownership trends. The proportion of renters increased from 57% in 2013 to a peak of 62% in 2015, before gradually declining to 54% in 2020 and then rising slightly to 57% in 2022. Average rent prices have shown a steady upward trend, rising from $618 in 2013 to $843 in 2017, representing a 36% increase. After a slight dip to $793 in 2019, rents rose again to $817 in 2021 before decreasing to $749 in 2022. These fluctuations in rent prices and renter percentages may be influenced by changes in population, which increased from 4,450 in 2013 to 5,115 in 2022, potentially affecting housing demand.
In 2023 and 2024, The Heights continued to see growth in average home prices. The average home price reached $107,636 in 2023 and further increased to $113,271 in 2024. This represents a 12.8% increase from 2022 to 2023 and a 5.2% increase from 2023 to 2024. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, potentially impacting homebuying affordability.
Looking ahead, based on the observed trends, we can predict that average home prices in The Heights may continue to rise over the next five years, albeit at a potentially slower rate due to higher interest rates. A conservative estimate might suggest an annual increase of 3-5%, which could bring average home prices to around $130,000-$140,000 by 2029. Average rent prices, which have shown more volatility, may stabilize or increase moderately, potentially reaching $800-$850 per month in the same timeframe, assuming steady population growth and economic conditions.
In summary, The Heights has demonstrated resilience and growth in its housing market, with significant appreciation in home values despite fluctuations in homeownership rates. The neighborhood has maintained a relatively balanced mix of owners and renters, adapting to changing economic conditions and interest rate environments. The recent surge in home prices, coupled with rising interest rates, suggests a dynamic and evolving housing landscape in this Wilkes-Barre community.
