Indicators 2024: Housing has risen as a major regional priority

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WILKES-BARRE — Jill Avery-Stoss, Chief Operating Officer at The Institute, housing is a core part of community health.

Avery-Stoss said housing has risen as a major regional priority. She said there is currently a housing shortage at multiple price points and various factors have forced increases in housing costs.

“Potential home-buyers are also challenged by high interest rates,” Avery-Stoss said. “Housing-related challenges were evident prior to the pandemic, as new building was limited and blight increased.”

Avery-Stoss added, “People without stable and affordable housing are more vulnerable than others to physical and mental health risks, and their housing status affects their ability to maintain consistent employment. Insecure housing also affects academic performance of children.”

Therefore, Avery-Stoss said housing affects the economy, workforce and workforce pipeline, the health and social services industry, and external factors such as crime rates.

According to Avery-Stoss about two-thirds of units in Lackawanna and Luzerne Counties are owner-occupied. Compared to renters, homeowners tend to spend less of their monthly incomes on housing costs.

Lackawanna County and Luzerne County homeowners spent 14.6% of their incomes on select monthly owner costs in 2022, for example. The rate for Wayne County homeowners was 16.3% and the rate for Pennsylvania homeowners was 15.3%.

Avery-Stoss said monthly owner costs include mortgage payments, real estate taxes, insurances, utilities, fuels, mobile home costs, and condominium fees. Only owner-occupied units with mortgages are included in this data-set.

“In comparison, Luzerne County renters spent 30.4% of their incomes on housing in 2022,” added Avery-Stoss. “The numbers for Lackawanna and Wayne counties are 29.1% and 31.3%, respectively. Pennsylvania renters spent 30.4% of their incomes on housing in 2022. Generally, renters have lower incomes than homeowners, so they face more housing insecurity even though they may face fewer costs.”

Regional rental rates and home values remain high

Avery-Stoss said Luzerne County home values increased from 2022 to 2023 (by 23.7%). They rose 12% from 2021 to 2022. From 2018 to 2019 the county only experienced a 6.6% increase. Lackawanna County home values increased 24.1%, and 10.2% from 2021 to 2022. These values are larger than the 3.9% increase from 2018 to 2019.

From 2022 to 2023, Wayne County had the lowest increase of home values (5.5%). It had the largest increase from 2021 to 2022, however (20.1%). From 2018 to 2019, Wayne County home values only increased by 3.5%.

Avery-Stoss said typical market rent in the Scranton/Wilkes-Barre/Hazleton metropolitan area has risen along with home values. Rental rates rose 3.5% from 2022 to 2023, 11.4% from 2021 to 2022, and 13.6% from 2020 to 2021. On average, typical market rent for the region experienced an increase of 7.8% from year to year.

“These trends highlight the need for new efforts to ensure access to affordable housing in Northeastern Pennsylvania,” Avery-Stoss said. “Affordable housing should not be construed as meaning low-income housing only. Many people working full-time jobs in a variety of occupations such as education, health care, manufacturing, etc. cannot afford some of the market prices.”