Housing has become a major regional priority

July 20 – WILKES-BARRE – Jill Avery-Stoss, Chief Operating Officer at The Institute, says housing is an essential component of community health.

Avery-Stoss said housing has become a major regional priority. She said there is currently a shortage of housing across multiple price points and that several factors have led to higher housing costs.

“Potential homebuyers are also challenged by high interest rates,” Avery-Stoss said. “Housing challenges were evident even before the pandemic, as new construction was low and disrepair was increasing.”

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 children’s academic performance.”

According to Avery-Stoss, housing affects the economy, the labor force and workforce flows, the health and social services sector, and external factors such as crime rates.

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

For example, homeowners in Lackawanna County and Luzerne County spent 14.6% of their income on certain monthly owner expenses in 2022. The rate for homeowners in Wayne County was 16.3%, and the rate for homeowners in Pennsylvania was 15.3%.

Avery-Stoss said monthly owner expenses include mortgage payments, property taxes, insurance, utilities, fuel, mobile home fees and condominium fees. Only owner-occupied units with mortgages are included in this data set.

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

Regional rents and home values ​​remain high

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

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

Avery-Stoss said typical market rents in the Scranton/Wilkes-Barre/Hazleton metro area have increased along with home values. Rents rose 3.5% from 2022 to 2023, 11.4% from 2021 to 2022, and 13.6% from 2020 to 2021. On average, typical market rents for the region increased 7.8% year over year.

“These trends underscore the need for renewed efforts to ensure access to affordable housing in Northeastern Pennsylvania,” Avery-Stoss said. “Affordable housing should not be understood as housing for low-income earners alone. Many people who work full-time in a variety of occupations, such as education, health care, manufacturing, etc., cannot afford some market prices.”

Contact Bill O’Boyle at 570-991-6118 or on Twitter @TLBillOBoyle.

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