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Zip Code 18032: Rising Home Values and Ownership Rates in Catasauqua, PA
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 18032, located in Catasauqua, Pennsylvania, has experienced significant changes in homeownership rates and property values over the past decade. This area, with a population of 8,982 in 2022, has seen a notable shift towards increased homeownership and rising average home prices.
The homeownership rate in zip code 18032 has shown a strong upward trend, increasing from 60% in 2013 to 72% in 2022. This 12 percentage point increase coincides with a substantial rise in average home prices. In 2013, the average home price was $130,165, which steadily increased to $221,919 by 2022, representing a 70.5% increase over nine years. This correlation suggests that as property values appreciated, more residents were motivated to invest in homeownership.
Federal interest rates have played a crucial role in shaping homeownership trends in the area. The period from 2013 to 2016 saw historically low interest rates, ranging from 0.09% to 0.4%. During this time, homeownership rates increased from 60% to 65%. As interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), we still observed an increase in homeownership to 66%, indicating strong local demand for housing despite slightly higher borrowing costs.
The rental market in zip code 18032 has experienced inverse trends to homeownership. The percentage of renters decreased from 40% in 2013 to 28% in 2022. Despite this decline, average rent prices have shown overall growth, albeit with some fluctuations. In 2013, the average rent was $1,058, which peaked at $1,172 in 2014 before settling at $1,087 in 2022. This represents a modest 2.7% increase over the decade, significantly lower than the growth in home prices.
Looking at the most recent data, average home prices in zip code 18032 continued their upward trajectory, reaching $238,919 in 2023 and $254,802 in 2024. This represents a 14.8% increase from 2022 to 2024, despite a significant rise in federal interest rates to 5.02% in 2023 and 5.33% in 2024. This suggests strong local demand and potentially limited housing supply are outweighing the impact of higher borrowing costs.
Applying predictive models to forecast 5-year trends, we anticipate average home prices in zip code 18032 to continue rising, potentially reaching around $300,000 by 2029. This projection is based on the consistent upward trend observed over the past decade and the area's increasing desirability. For rent prices, we expect more modest growth, potentially reaching an average of $1,200 to $1,300 per month by 2029, assuming the current balance between supply and demand remains relatively stable.
In summary, zip code 18032 has demonstrated a clear shift towards increased homeownership, with property values appreciating significantly. The area has shown resilience in its housing market, with home prices continuing to rise even in the face of higher interest rates. While the rental market has shrunk proportionally, rent prices have remained relatively stable with modest growth. These trends suggest a strong local economy and continued demand for housing in this Pennsylvania borough.
