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Zip Code 18508: Rising Home Values and Shifting Ownership in Scranton's Industrial Heritage Area
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 18508, located in Scranton, Pennsylvania, has experienced significant shifts in homeownership rates and property values over the past decade. This area, known for its rich industrial history and as the setting for the popular TV show "The Office," has seen notable changes in its real estate landscape.
The homeownership rate in zip code 18508 has shown a gradual decline from 2013 to 2022. In 2013, 56% of housing units were owner-occupied, but by 2022, this figure had decreased to 51%. This trend coincides with fluctuations in average home prices. The average home price in 2013 was $72,233, which dropped to its lowest point of $62,568 in 2017 before rebounding to $107,079 by 2022, representing a substantial 71% increase over five years.
Federal interest rates have played a role in these homeownership trends. From 2013 to 2016, interest rates remained below 0.5%, which generally encourages home buying. Despite these low rates, homeownership still declined, suggesting other local factors were at play. As interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, the downward trend in homeownership continued, albeit at a slower pace.
Correspondingly, the percentage of renters in zip code 18508 increased from 44% in 2013 to 49% in 2022. This shift towards renting aligns with the rise in average rent prices, which grew from $739 in 2013 to $823 in 2022, an 11.4% increase. The population in this zip code also grew during this period, from 11,263 in 2013 to 11,527 in 2022, potentially contributing to the increased demand for rental properties.
In 2023 and 2024, the real estate market in zip code 18508 continued its upward trajectory. The average home price reached $121,586 in 2023 and further increased to $133,161 in 2024, representing a 24.4% rise over two years. This significant appreciation occurred despite the Federal interest rate climbing to 5.02% in 2023 and 5.33% in 2024, which typically would slow down home buying activity.
Looking ahead, predictive models suggest that average home prices in zip code 18508 may continue to rise over the next five years, potentially reaching around $160,000 by 2029 if current trends persist. Average rent prices are also expected to increase, possibly surpassing $950 per month within the same timeframe. However, these projections are subject to various economic factors and local market conditions.
In summary, zip code 18508 has experienced a shift towards renting, with homeownership rates declining despite periods of low interest rates. Average home prices have shown significant appreciation, especially in recent years, while rent prices have steadily increased. The area's growing population and changing demographics are likely contributing factors to these trends, shaping the evolving real estate landscape of this Scranton neighborhood.
