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Zip Code 18642: Duryea's Rising Home Values Amid Shifting Ownership Trends
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 18642, located in Duryea, Pennsylvania, has experienced notable shifts in homeownership rates and housing prices over the past decade. This area, known for its small-town charm and proximity to larger urban centers, has seen interesting trends in both the ownership and rental markets.
The homeownership rate in zip code 18642 has remained relatively stable, with slight fluctuations over the years. In 2013, the area had a 76% homeownership rate, which increased to 78% by 2017. However, there was a decrease to 72% in 2022, indicating a recent shift towards renting. Concurrently, average home prices have shown a significant upward trend. In 2013, the average home price was $116,804, which steadily increased to $167,657 by 2022, representing a 43.5% increase over this period.
The relationship between federal interest rates and homeownership rates in this area shows some correlation. For instance, when interest rates were at historic lows between 2013 and 2016 (ranging from 0.09% to 0.40%), homeownership rates remained steady at around 76-77%. As interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, we see a slight decline in homeownership rates to 72%. This trend aligns with the general principle that lower interest rates tend to encourage homeownership due to more affordable financing options.
Renter percentages in zip code 18642 have shown a modest increase in recent years, rising from 22% in 2017 to 28% in 2022. Interestingly, average rent prices have fluctuated during this period. In 2013, the average rent was $722, which decreased to $577 by 2017. However, rent prices have since rebounded, reaching $648 in 2022. This trend suggests a growing demand for rental properties in the area, possibly due to the increasing average home prices making homeownership less accessible for some residents.
Looking at the most recent data, the average home price in zip code 18642 continued to rise, reaching $170,986 in 2023 and $175,862 in 2024. This represents a 4.9% increase from 2022 to 2024. Concurrently, federal interest rates have also increased significantly, rising from 1.68% in 2022 to 5.02% in 2023, and further to 5.33% in 2024. These higher interest rates may impact future homeownership trends in the area.
Based on the historical data and current trends, we can make some predictions for the next five years. Average home prices in zip code 18642 are likely to continue their upward trajectory, potentially reaching around $200,000 by 2029. However, the rate of increase may slow down due to higher interest rates. Average rent prices are also expected to rise, potentially reaching $700-$750 by 2029, driven by increased demand for rental properties as homeownership becomes more challenging for some residents.
In summary, zip code 18642 has experienced a gradual shift towards renting in recent years, coupled with significant increases in average home prices. The area has shown resilience in its housing market, with steady growth in property values despite fluctuations in the broader economic environment. The interplay between rising home prices, increasing interest rates, and shifts in homeownership rates will likely continue to shape the housing landscape in this Pennsylvania borough over the coming years.
