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Zip Code 18101: Rising Home Values and Shifting Ownership in Allentown's Urban Core
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 18101, located in Allentown, Pennsylvania, has experienced significant changes in its housing market over the past decade. This urban area has seen a notable shift in ownership patterns, accompanied by fluctuations in average home prices and average rent prices.
The homeownership rate in zip code 18101 has shown a declining trend from 2013 to 2022. In 2013, the percentage of owner-occupied housing units stood at 15%. This figure remained relatively stable until 2017 when it dropped to 14%. By 2022, the homeownership rate had further decreased to 13%. Concurrently, average home prices in the area have demonstrated a substantial increase. In 2013, the average home price was $46,917. This figure rose steadily, reaching $74,193 in 2018, and then experienced a sharp increase to $140,738 by 2022, representing a 200% increase over the 2013 value.
The relationship between federal interest rates and homeownership rates in this zip code appears to follow expected patterns. As interest rates remained low from 2013 to 2016 (below 0.5%), the homeownership rate held steady at 15-16%. However, as interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, the homeownership rate declined to 13%. This trend aligns with the general principle that higher interest rates can make mortgages less affordable, potentially discouraging homeownership.
The renter percentage in zip code 18101 has shown an upward trend, increasing from 85% in 2013 to 87% in 2022. This rise in the renter population coincides with an increase in average rent prices. In 2013, the average rent was $843 per month. This figure grew steadily, reaching $931 in 2018, and then rose more sharply to $1,069 by 2022, marking a 27% increase over the 2013 value. The population in the zip code also increased during this period, from 3,584 in 2013 to 4,281 in 2022, which likely contributed to the increased demand for rental properties and the subsequent rise in rent prices.
In 2023 and 2024, the housing market in zip code 18101 continued to evolve. The average home price in 2023 reached $150,121, a further increase from 2022. In 2024, this figure rose to $163,761, indicating a continued upward trend in home values. Notably, federal interest rates also increased significantly during this period, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homeownership trends in the area.
Looking ahead, predictive models suggest that the upward trend in both average home prices and average rent prices is likely to continue over the next five years. Based on historical data and current market conditions, average home prices in zip code 18101 could potentially reach around $200,000 by 2029. Similarly, average rent prices might approach $1,300 per month within the same timeframe. However, these projections are subject to various economic factors and market dynamics.
In summary, zip code 18101 has experienced a decrease in homeownership rates alongside a significant increase in average home prices from 2013 to 2024. The renter population has grown, accompanied by rising average rent prices. The recent sharp increase in federal interest rates may further influence these trends, potentially affecting affordability and homeownership rates in the coming years. The continued rise in both home prices and rent prices suggests a dynamic and potentially challenging housing market for residents of this Allentown zip code.
