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Wilkes-Barre's Housing Market: Rising Home Values Amidst Stable Ownership Rates
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Wilkes-Barre, Pennsylvania, a historic city located in the heart of the Wyoming Valley, has experienced notable shifts in its housing market over the past decade. With a population of 44,068 in 2022 and a land area of 7.2 square miles, this densely populated city has seen interesting trends in homeownership rates, average home prices, and average rent prices.
The homeownership rate in Wilkes-Barre has remained relatively stable, fluctuating between 46% and 48% from 2013 to 2022. Despite this stability, the city has witnessed significant changes in average home prices. In 2013, the average home price was $70,623, which steadily increased to $126,482 by 2022, representing a substantial 79% increase over this period. This upward trend in home prices, however, did not correlate with a significant shift in homeownership rates, suggesting other factors influencing housing decisions in the city.
Federal interest rates have played a crucial role in shaping the housing market landscape. From 2013 to 2020, interest rates remained historically low, ranging from 0.09% to 2.16%. This period of low interest rates coincided with the gradual increase in average home prices in Wilkes-Barre. However, the homeownership rate remained relatively constant during this time, indicating that factors beyond interest rates, such as local economic conditions or housing supply, may have influenced homeownership decisions.
Rental trends in Wilkes-Barre have shown a clear upward trajectory. The percentage of renters increased slightly from 52% in 2013 to 53% in 2022. Concurrently, average rent prices rose from $694 in 2013 to $767 in 2022, an increase of approximately 10.5%. This growth in both renter percentage and average rent prices suggests a growing demand for rental properties in the city, possibly driven by factors such as job market changes or shifts in housing preferences among younger residents.
In 2023 and 2024, Wilkes-Barre's housing market continued to evolve. The average home price reached $135,679 in 2023 and further increased to $146,195 in 2024, representing a 15.6% increase over two years. This rapid appreciation occurred despite a significant rise in federal interest rates, which reached 5.02% in 2023 and 5.33% in 2024. These higher interest rates typically make mortgages more expensive, yet the housing market in Wilkes-Barre has shown resilience in the face of these changes.
Looking ahead, predictive models suggest that the upward trend in both average home prices and rent prices is likely to continue over the next five years. Average home prices are projected to potentially reach around $170,000 by 2029, while average rent prices could approach $900 per month. These projections assume a continuation of current economic conditions and housing market trends.
In summary, Wilkes-Barre's housing market has demonstrated resilience and growth over the past decade. The stability in homeownership rates contrasted with rising home prices suggests a complex interplay of factors influencing the local real estate market. The consistent increase in both renter percentages and average rent prices indicates a robust rental market. As the city moves forward, these trends point towards a dynamic and evolving housing landscape that will continue to shape the character of Wilkes-Barre in the coming years.
