Loading Content...
Zip Code 18240: Rising Home Values Amidst Fluctuating Ownership Rates in Nesquehoning, Pennsylvania
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Zip code 18240, located in Nesquehoning, Pennsylvania, has experienced notable shifts in homeownership rates and housing prices over the past decade. This area, with a population of 4,114 in 2022, has seen fluctuations in both owner-occupied and renter-occupied housing, as well as significant changes in average home and rent prices.
The homeownership rate in zip code 18240 has shown some variability over the years, with a general trend of slight decline. In 2013, the area had a homeownership rate of 71%, which remained relatively stable until 2020 when it dropped to 67%. However, it rebounded to 74% in 2021 before falling back to 67% in 2022. Concurrently, average home prices have shown a steady upward trend. In 2013, the average home price was $96,939, which gradually increased to $122,812 by 2020, representing a 26.7% increase over seven years. The most significant growth occurred between 2020 and 2022, with average home prices surging from $122,812 to $169,439, a remarkable 38% increase in just two years.
Federal interest rates have played a role in homeownership trends in the area. The period from 2013 to 2020 saw historically low interest rates, ranging from 0.09% to 2.16%. This low-interest environment likely contributed to the relative stability in homeownership rates during this time. However, the sharp increase in interest rates to 1.68% in 2022 coincided with a drop in homeownership to 67%, suggesting that higher borrowing costs may have impacted some residents' ability to purchase homes.
Renter percentages in zip code 18240 have generally mirrored the inverse of homeownership rates, fluctuating between 24% and 33% from 2013 to 2022. Interestingly, average rent prices have shown a downward trend despite these fluctuations. In 2013, the average rent was $877, which decreased to $752 by 2020, a 14.3% reduction. However, there was a slight uptick to $763 in 2022. This downward trend in rent prices, despite periods of increased renter occupancy, could be attributed to various local economic factors or housing market conditions specific to the area.
As of 2023 and 2024, the housing market in zip code 18240 continues to show strong growth. The average home price reached $178,084 in 2023 and further increased to $185,661 in 2024, representing a 9.6% rise over two years. This growth occurred despite a significant increase in federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024. The continued appreciation in home values despite higher borrowing costs suggests a robust demand for housing in the area.
Looking ahead, based on the historical data and recent trends, we can project that average home prices in zip code 18240 may continue to rise over the next five years, albeit potentially at a more moderate pace due to higher interest rates. If the current trajectory holds, average home prices could potentially reach around $220,000 to $230,000 by 2029. Rent prices, which have been more volatile, may stabilize or see modest increases, potentially reaching an average of $800 to $850 per month by 2029.
In summary, zip code 18240 has experienced a complex interplay between homeownership rates, average home prices, and rent costs. The area has seen substantial appreciation in home values, particularly in recent years, despite fluctuations in homeownership rates. The rental market has shown a general trend of decreasing prices, though this may change in the coming years. The resilience of the housing market in the face of rising interest rates suggests a strong local demand for housing, which could continue to drive both home prices and potentially rental costs upward in the near future.
