Pennsylvania Housing Market Vitality

Market Rank

twenty-one

Pennsylvania metro area house prices are forecasted to outperform the national market over the next twelve months. Currently, the market is underperforming the overall U.S. market. Compared to 12-months ago, Pennsylvania’s housing market has strengthened. Current local economic conditions support an estimated 16.6% 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 twenty-first amongst all states and D.C. The three-month outlook is negative.

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 AREASITUATIONOUTLOOKUS METRO RANK (/402)
Allentown-Bethlehem-Easton, PA-NJ Tracking Positive77
Altoona, PA Underperforming Negative380
Bloomsburg-Berwick, PA Underperforming Negative318
Chambersburg-Waynesboro, PA Underperforming Negative369
East Stroudsburg, PA Outperforming Positive40
Erie, PA Underperforming Negative302
Gettysburg, PA Underperforming Negative377
Harrisburg-Carlisle, PA Underperforming Positive220
Johnstown, PA Underperforming Negative361
Lancaster, PA Underperforming Positive151
Lebanon, PA Underperforming Positive150
Montgomery County-Bucks County-Chester County, PA Underperforming Positive146
Newark, NJ-PA Underperforming Positive232
Philadelphia, PA Underperforming Positive149
Pittsburgh, PA Underperforming Positive233
Reading, PA Underperforming Positive102
Scranton–Wilkes-Barre–Hazleton, PA Underperforming Positive181
State College, PA Underperforming Neutral310
Williamsport, PA Underperforming Negative396
York-Hanover, PA Underperforming Positive209
Youngstown-Warren-Boardman, OH-PA Underperforming Positive119

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.

Updated December 30, 2021 with data through November 2021