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Zip Code 18104: Rising Home Values and Shifting Ownership Patterns in Allentown, 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 18104, located in Allentown, Pennsylvania, has experienced significant changes in its housing market over the past decade. This area has seen fluctuations in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market conditions.
The homeownership rate in zip code 18104 has shown some variability over the years. In 2013, the area had a high homeownership rate of 74%. However, this rate decreased to 69% by 2017, indicating a shift towards renting. Interestingly, as of 2022, the homeownership rate had rebounded to 72%. During this period, average home prices in the area have shown a consistent upward trend. In 2013, the average home price was $192,149, which increased to $216,691 by 2017, and further rose to $325,693 in 2022. This represents a substantial 69.5% increase in average home prices from 2013 to 2022.
The relationship between federal interest rates and homeownership rates in zip code 18104 aligns with well-established trends. From 2013 to 2016, when interest rates were extremely low (ranging from 0.11% to 0.4%), homeownership rates remained relatively stable at 74%. As interest rates began to rise from 2017 onwards, reaching 1.83% in 2018, we observed a slight decline in homeownership rates to 69-70%. However, despite rising interest rates in 2021 and 2022, homeownership rates showed a slight increase, possibly due to other local market factors.
Regarding renter percentages and average rent prices, there's a noticeable correlation. In 2013, when the renter percentage was 25%, the average rent was $1,300. As the renter percentage increased to 31% by 2017, the average rent also rose to $1,378. The renter percentage fluctuated between 28% and 31% from 2018 to 2022, with average rent prices generally increasing during this period. By 2022, the average rent had reached $1,458, representing a 12.2% increase from 2013, while the renter percentage stood at 28%.
In 2023 and 2024, we see a continuation of the upward trend in average home prices in zip code 18104. The average home price in 2023 was $341,781, and it further increased to $358,482 in 2024. This represents a 10% increase from 2022 to 2024. Concurrently, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024, which could potentially impact future homeownership rates and market dynamics.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 18104 will continue to rise, potentially reaching around $425,000 by 2029. Average rent prices are also expected to increase, possibly surpassing $1,700 per month within the same timeframe. These projections assume a continuation of current economic conditions and local market trends.
In summary, zip code 18104 has experienced a general increase in both homeownership rates and average home prices over the past decade, with some fluctuations. The area has also seen rising average rent prices, albeit at a slower rate than home prices. The recent sharp increase in interest rates may influence future homeownership trends. Moving forward, we expect continued growth in both average home prices and rent prices, reflecting the area's desirability and economic conditions.
