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Zip Code 18202: Rising Home Values and Ownership Rates in West Hazleton, 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 18202, located in West Hazleton, Pennsylvania, has experienced notable shifts in homeownership rates and housing prices over the past decade. This area has seen a general trend towards increased homeownership and rising average home prices, while also experiencing fluctuations in its rental market.
The ownership percentage in zip code 18202 has shown a significant upward trend, particularly in recent years. In 2013, the homeownership rate stood at 64%, but by 2022, it had increased to 72%, marking an 8 percentage point rise over nine years. This increase in homeownership coincided with a substantial growth in average home prices. The average home price in 2013 was $119,882, and it steadily climbed to reach $216,636 by 2022, representing an impressive 80.7% increase over this period.
The relationship between federal interest rates and homeownership rates in this zip code appears to follow the general economic principle that lower interest rates tend to encourage homeownership. For instance, when interest rates were at historic lows between 2020 and 2021 (0.38% and 0.08% respectively), the area saw its highest homeownership rates of 67% in 2020 and 68% in 2021. This trend suggests that the low-cost financing environment likely contributed to making homeownership more accessible in the area.
Conversely, the percentage of renters in zip code 18202 has decreased over time, dropping from 38% in 2019 to 28% in 2022. Despite this decline in the renter population, average rent prices have shown an overall upward trend. The average rent increased from $745 in 2019 to $790 in 2022, representing a 6% rise over three years. This increase in rent prices, despite a decreasing renter population, could be attributed to various factors such as improved housing quality or increased demand for rental properties in specific segments of the market.
In 2023 and 2024, the housing market in zip code 18202 continued its upward trajectory. The average home price reached $218,881 in 2023 and further increased to $229,878 in 2024, representing a 5% growth over this period. This rise occurred despite the significant increase in federal interest rates, which stood at 5.02% in 2023 and 5.33% in 2024. The continued appreciation in home values despite higher borrowing costs suggests strong underlying demand for housing in this area.
Looking ahead, based on the historical data and current trends, we can project continued growth in both average home prices and rent prices over the next five years. Average home prices are expected to maintain their upward trajectory, potentially reaching around $260,000 to $275,000 by 2029. Average rent prices are also likely to continue their gradual increase, potentially reaching $850 to $900 per month in the same timeframe.
In summary, zip code 18202 has demonstrated a clear trend towards increased homeownership and rising property values over the past decade. The area has shown resilience in its housing market, with home prices continuing to appreciate even in the face of rising interest rates. While the rental market has seen a decrease in the percentage of renters, rent prices have continued to climb, indicating a complex and dynamic housing landscape in this Pennsylvania borough.
