Pennsylvania Housing Market Vitality

Market Rank

fourteen

Pennsylvania metro area house prices are forecasted to track the national market over the next twelve months. Currently, the market is tracking the overall U.S. market. Compared to 12-months ago, Pennsylvania’s housing market has strengthened. Current local economic conditions support an estimated 7.6% increase in house prices over the next twelve months. Based on the housing market vitality of the twenty one metro housing markets which comprise it, Pennsylvania’s housing market ranks fourteenth amongst all states and D.C. The three-month outlook is neutral.

Housing Market Vitality

Housing Market Vitality summarizes the impact of economic conditions on house prices. A value of 100 corresponds to conditions supporting current price appreciation; values less than 100 correspond to a dampening effect and values greater than 100 indicate a positive impact on house prices. A housing market vitality value can be interpreted as a growth rate. Hence, a reading of 105.8 can be interpreted as a 5.8% annualized increase in house prices.

Pennsylvania Metro Housing Markets

Pennsylvania is comprised of twenty one metro housing markets that account for nearly 88% of the state’s population. The Keystone State metro housing markets are unique in their demographics and local economies and exhibit trends that are distinct from the national and state narrative. Each metro market presents its own unique opportunity.

METRO AREA SITUATION OUTLOOK US METRO RANK (/402)
Allentown-Bethlehem-Easton, PA-NJ Outperforming Positive 60
Altoona, PA Underperforming Negative 369
Bloomsburg-Berwick, PA Tracking Negative 267
Chambersburg-Waynesboro, PA Underperforming Positive 216
East Stroudsburg, PA Outperforming Positive 13
Erie, PA Tracking Negative 253
Gettysburg, PA Underperforming Negative 361
Harrisburg-Carlisle, PA Tracking Negative 260
Johnstown, PA Underperforming Negative 364
Lancaster, PA Outperforming Positive 104
Lebanon, PA Outperforming Positive 129
Montgomery County-Bucks County-Chester County, PA Underperforming Positive 163
Newark, NJ-PA Underperforming Positive 205
Philadelphia, PA Outperforming Positive 102
Pittsburgh, PA Outperforming Neutral 166
Reading, PA Outperforming Positive 61
Scranton–Wilkes-Barre–Hazleton, PA Outperforming Positive 112
State College, PA Underperforming Negative 362
Williamsport, PA Outperforming Negative 263
York-Hanover, PA Tracking Negative 255
Youngstown-Warren-Boardman, OH-PA Outperforming Neutral 141

Industry Specialization

Pennsylvania’s state economy is specialized in Edu Health svcs and Manufacturing. Mining, Construction, and Information industry sectors are less important to the state economy compared to the national economy.

Industry specialization helps explain the differing impact of industry trends on local economies in contrast to industry composition which describes the structure of the economy. A Specialization Index value greater than 100 corresponds to the sector having a greater share of the state economy than it does of the national economy. Sectors with a Specialization Index greater than 120 characterize the local economy.

Demographics

Compared to the U.S., there is a lower incidence of poverty amongst Pennsylvania residents and they have greater purchasing power. There are more high school graduates and a smaller proportion of the population is college educated. Pennsylvania’s population is comparatively less diverse than the overall U.S. population.

A Demographics Index value greater than 100 corresponds to the factor being more intense in the state versus the national average. Characteristics of the local population is a longer-term factor that influences the housing market.

Data through March 2021