#rentalmarket #ScrantonPA #citypopulation #housingdemand #housingmarket
Have you ever wondered how a rental market in a place like Scranton, PA can remain strong despite the city’s population falling by half over the past 50 years? It’s a common question that many people have, and the answer may surprise you!
## Understanding the Rental Market in Scranton, PA
Scranton, PA is a city that has seen significant population decline over the past five decades. Once home to 140,000 people, the city now houses only 75,000 residents – a decrease of 46%. With such a drastic decrease in population, one would expect the housing market to be saturated with vacant apartments and a decrease in demand. However, the rental market in Scranton remains strong. So, how is this possible?
### Factors Contributing to a Strong Rental Market
1. **Job Opportunities**: Despite the decline in population, Scranton still offers job opportunities in various industries. The presence of companies and businesses in the city creates a demand for housing among those who work in the area.
2. **Affordability**: Compared to larger cities, the cost of living in Scranton is relatively low. This makes it an attractive option for individuals and families looking for affordable housing options.
3. **College Students**: Scranton is home to several universities and colleges, attracting a large number of students to the city. This student population drives the demand for rental housing near campuses.
4. **Historic Charm**: The city’s rich history and cultural attractions make it an appealing place to live for many, despite the population decline. This unique charm contributes to the demand for housing in the area.
### Strategies for Landlords to Thrive in a Declining Population
1. **Focus on Target Markets**: Landlords in Scranton can target specific demographics such as college students, young professionals, or retirees to cater to the demand for rental housing.
2. **Invest in Property Maintenance**: Keeping rental properties well-maintained and up-to-date can attract tenants and help landlords thrive in a competitive market.
3. **Offer Incentives**: Landlords can offer incentives such as discounted rent, flexible lease terms, or amenities to attract and retain tenants in a declining population.
4. **Stay Informed**: Keeping up-to-date with market trends, vacancy rates, and rental prices can help landlords make informed decisions and adapt to changes in the rental market.
## Conclusion
In conclusion, the rental market in Scranton, PA remains strong despite the city’s declining population due to factors such as job opportunities, affordability, college students, and the city’s historic charm. By understanding these factors and implementing strategies to cater to the demand for rental housing, landlords can thrive in a competitive market and continue to attract tenants. So next time you wonder how a rental market can be strong in a city with a shrinking population, remember that there are many factors at play that contribute to its resilience.
One thing it could be is that when the economy is doing good, fewer people will opt to have roommates. So that’s one way the population can decline with the same number of housing units. Also if the housing demand is going down, you probably won’t find as many developers willing to spend a lot on new housing units or maintaining existing ones so the supply might go down.
More people today are living alone, with roommates or as childless couples.
Even couples who do have children are having smaller families.
A big factor to your answer is simply fewer occupants per unit.
Housing stock has a limited lifespan, especially if it’s not maintained well. Demographics can also be a factor – for example, young families tend to live in higher concentrations than retiree’s do. The kids move out but Mom and Dad stay. Decades later the local community has fewer people overall even if the housing stock remains the same.
That level is kept fixed by developers and owner cartels. Bulldoze old stock and use the land for other types of revenue, plan out type and numbers for new intelligently priced stock, constantly.
This is not the only reason
, But an article by redfin (real estate website)
Ran the following article this year
“Empty-nest baby boomers own 28% of the nation’s large homes, while millennials with kids own just 14%.
Empty nesters take up a lot of large homes because affordability was better when they were young, and there’s no financial incentive to sell now: Most boomers own their homes free and clear, and most who have a mortgage have a low rate.
The landscape has transformed over the last decade: 10 years ago, young families were just as likely as empty nesters to own large homes.
Empty nesters take up at least 20% of large homes everywhere in the U.S.
Millennials with kids take up less than 18% of large homes no matter where they live. They own the biggest share in the Midwest and the smallest share in coastal California. ”
https://www.redfin.com/news/empty-nesters-own-large-homes/
Can be a mix of reasons honestly.
Some younger professionals are now able to live alone as they lock in rates that are near pandemic levels.
Certain people are lowering the roommate count. Where they’d normally have like 3 people under a roof there are now 2. This means 2 units being rented by the same number of people that used to be 1.
Big firms who can buy a thousands of land plots, houses, or rent hundreds of apartments to use as Air BNB and then sit on them for years with no concern for loss because they have the capital to play the long game.
supply and demand. someone is buying up all these properties and expect lots of renters/buyers.
Maybe it’s because it still has big time employers like Dunder Mifflin?
If by “strong” you mean “rent is high”, that’s because there’s a nation wide conglomerate of apartment and housing owners all working together to raise rent nation wide.
There’s a long time trend away from home ownership and toward renting. The cost of getting into a house is high and they can be hard to get out of quickly.
Average incomes in Scranton are low. Pay has not kept up enough for folks to save for a house. Buying a house includes a lot of new expenses. When we bought an old house in 1984 (with an 18% mortgage) I was scared of anything major happening to the house as we had so little money leftover each month. Lower income means more demand for apartments.
Pennsylvania demographics are also changing. More immigrant families are flocking to towns like Reading and Scranton where there is work and the ability to find housing. This also puts pressure on the rental market.
First, your time scale is off. Scranton had 140,000 people in 1940, so it’s the past 80 years, not 50. And also, that drop hasn’t been evenly spread over that time period. The biggest population drops by percentage were in the 40s, 50s and 70s. For the past 24 years, the population of Scranton has been much more stable, moving from 76,415 in 2020 to an estimated 75,524 now. That’s a drop, but it’s a very small one spread out across 24 years. Something like a change in family size or a higher percentage of kids leaving to go to college and then not returning home could cause the population to drop without having a big impact on the housing supply. It may also be that due to high interest rates, people haven’t been able to buy homes as much right now as they were a few years ago, and so the apartment market is extra tight as a result.
Scranton, WHAT!? The electric city!!