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Zip Code 18405: Rising Home Values and Strong Ownership in Rural Pennsylvania
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 18405, located in Masthope, Pennsylvania, presents an interesting case study of homeownership and housing market trends. This rural area, covering 34.53 square miles, has seen fluctuations in its population and housing dynamics over the past decade. The area has maintained a high rate of homeownership, with average home prices showing a significant upward trend, particularly in recent years.
The homeownership rate in zip code 18405 has remained consistently high, ranging from 85% to 92% between 2013 and 2022. This strong preference for homeownership coincides with a substantial increase in average home prices. In 2013, the average home price was $158,599, which steadily rose to $261,414 by 2022, representing a 65% increase over this period. The most dramatic rise occurred between 2020 and 2022, with average home prices jumping from $185,650 to $261,414, a 41% increase in just two years.
Federal interest rates have played a significant role in homeownership trends. From 2013 to 2020, interest rates remained relatively low, ranging from 0.09% to 2.16%. This period of low interest rates corresponded with the area's high homeownership rates, as affordable financing options likely encouraged home purchases. The slight dip in homeownership from 92% in 2020 to 87% in 2022 might be attributed to the sharp increase in home prices, potentially outpacing some buyers' affordability despite low interest rates.
The rental market in zip code 18405 has shown interesting trends as well. The percentage of renters has fluctuated between 8% and 15% from 2013 to 2022. Average rent prices have generally increased over this period, rising from $959 in 2013 to $1,017 in 2022. However, there have been fluctuations, with the highest average rent of $1,192 recorded in 2017. The relatively stable rental percentages, despite rising home prices, suggest that the area maintains a consistent demand for rental properties, possibly due to its rural nature and potential seasonal or recreational appeal.
In 2023 and 2024, the housing market in zip code 18405 continued its upward trajectory. The average home price reached $268,198 in 2023 and further increased to $277,428 in 2024, representing a 6% growth over these two years. This growth occurred despite a significant rise in federal interest rates, which jumped to 5.02% in 2023 and 5.33% in 2024. The continued price appreciation in the face of higher interest rates suggests strong underlying demand for housing in this area.
Looking ahead, based on the historical trends and recent data, we can project the following 5-year trends for zip code 18405: Average home prices are likely to continue their upward trajectory, albeit at a potentially slower pace due to higher interest rates. We might expect average home prices to reach around $320,000 to $350,000 by 2029. Average rent prices may see moderate increases, potentially reaching $1,200 to $1,300 per month by 2029, assuming the area maintains its appeal and economic stability.
In summary, zip code 18405 demonstrates a strong preference for homeownership, with average home prices showing significant appreciation, particularly in recent years. The area has maintained high homeownership rates despite rising prices, suggesting a robust local housing market. The rental market, while smaller, remains stable, indicating a balanced housing ecosystem. The continued price appreciation in 2023 and 2024, even with rising interest rates, underscores the area's attractiveness to homebuyers and investors alike.
