Scranton, PA
⚖️ Balanced Market📊 Fundamental Scores
🎯 The Bottom Line
The Scranton housing market offers stable cash flow with a 17.3x price-to-rent ratio. With a low risk grade and neutral verdict, it is a solid market to invest in Scranton for long-term buy-and-hold strategies.
📈 Price History
📊 Market Activity
📈 Market Analysis
Market Cycle
The current Scranton housing market is experiencing a balanced phase, reflected by an Ocity Market Temperature score of 68. Unlike overheated coastal markets, Scranton shows stability rather than volatility. The YoY price change of 3.2% indicates sustainable appreciation without the risk of a speculative bubble, making it a reliable environment for institutional capital deployment.
Supply & Demand
Supply dynamics currently favor sellers, though not aggressively. With a Months of Supply inventory at 1.8, the market is technically in seller territory (<3 months). However, the pace is manageable; 38.9% of homes sell within two weeks, yet 26.1% of listings see price drops, suggesting sellers must price realistically. The volume of 63 monthly sales against 54 new listings is slowly absorbing the 115 active units.
Pricing Power
Buyers retain slight leverage in negotiations, evidenced by a Sale-to-List Ratio of 96.9%. This is below the 100% threshold often seen in hyper-competitive markets. The median days on market stands at 23, providing a reasonable window for due diligence. For those looking to invest in Scranton, this data suggests that while inventory is tight, there is room to negotiate terms rather than engaging in aggressive bidding wars.
Scranton, PA Housing Market Forecast 2026–2028
🔮 Scranton Price Forecast 2026–2028
Scranton, PA Housing Market Forecast 2026–2028
For anyone asking "will Scranton home prices drop" in the near term, the current data suggests a stable glide path rather than a correction. The median home price of $196,150 remains accessible compared to national benchmarks, supported by a price-to-rent ratio of 17.3x that sits just below the national avg of 18x. This indicates buying is still a rational financial choice versus renting. With days on market at 23, demand is steady but not feverish, and the market temperature of 68/100 points to a balanced environment. The 3.2% YoY price change reflects a healthy deceleration from the 5-year CAGR of 8.2%, signaling a market maturing out of its rapid growth phase.
Looking at the Scranton housing market forecast through 2026-2028, I expect appreciation to moderate to a 2-4% annual range as affordability constraints tighten. The local economy, anchored by healthcare and education at institutions like Geisinger and the University of Scranton, provides a stable employment floor, while the city's relative affordability continues to attract buyers priced out of larger metros. However, the risk grade of A and a 5-year price change of 49.0% suggest the easy gains have been realized. For those analyzing "Scranton real estate Scranton 2027," the neutral verdict makes sense: inventory will likely remain tight given the low median rent of $854/mo, which keeps rental demand high and supports prices. The market won't boom, but a bust is equally unlikely.
Disclaimer: This forecast is a statistical projection based on historical price trends and should not be considered financial advice. Actual market outcomes may vary due to economic conditions, interest rates, local regulations, and other factors.
🏠 Rent vs Buy Analysis
Monthly Cost Breakdown
When analyzing the buy vs rent Scranton equation, the data strongly favors ownership from a wealth-building perspective. The median rent is $854/month, while the median home price is $196,150. Assuming a standard 20% down payment and a 7% interest rate, the monthly mortgage payment (excluding taxes/insurance) would likely exceed rent. However, the principal paydown and tax benefits often offset this gap over time.
5-Year Comparison
The 17.3x Price-to-Rent ratio is a critical metric. At this level, Scranton sits slightly below the national average of 18x, signaling that buying is generally more favorable than renting long-term. Over five years, a homeowner builds equity on an asset appreciating at 3.2% annually, while a renter faces rising housing costs with no return on investment.
When Renting Wins
- Short-term flexibility is required for employment changes.
- Zero exposure to maintenance costs or property repairs.
- Liquidity preservation is prioritized over building home equity.
When Buying Wins
- Locking in a fixed monthly payment against inflation.
- Building equity with a $196,150 asset base.
- Tax deductions on mortgage interest and property taxes.
🧮 Can You Afford Scranton? Interactive Calculator
Income Reality Check
Can you actually afford Scranton?
Great! At 19.8%, this mortgage falls within healthy financial limits. You have strong purchasing power in Scranton.
💰 Investment Thesis
Cash Flow Analysis
For investors looking to invest in Scranton, the numbers support a strong cash-flow strategy. With a median rent of $854/month and a median home price of $196,150, the gross rental yield is approximately 5.2%. Factoring in expenses (taxes, insurance, maintenance), the net yield remains competitive. The 17.3x price-to-rent ratio allows investors to purchase properties that generate positive monthly cash flow immediately, a rarity in many US markets.
House Hacking
House hacking is a viable entry point in the Scranton real estate landscape. An investor can purchase a multi-family unit or a single-family home with an accessory dwelling unit (ADU). Given the 50 Ocity Affordability score, acquisition costs are manageable. By living in one unit and renting the others, the investor can effectively eliminate their housing cost while gaining appreciation on the entire asset.
Target Investor
The ideal profile for this market is the long-term buy-and-hold investor. With a Risk Grade of A and a neutral market verdict, volatility is low. The 50 Investor Yield score indicates steady returns rather than explosive growth. This market suits those prioritizing capital preservation and consistent rental income over short-term flipping.
🏘️ House Hacking Calculator Interactive Calculator
House Hacking CalculatorOwner-Occupied Multi-Fam
🗺️ Neighborhood Breakdown
Entry-Level
The Scranton neighborhoods of Hillside and Minooka represent the entry-level tier. These areas offer the most affordable Scranton home prices, often dipping below the city median. Investors can find properties here for renovation projects, capitalizing on the 23 median days on market to move quickly on undervalued listings. Rental demand is high due to proximity to downtown employment hubs.
Mid-Range
Green Ridge and the West Side constitute the mid-range segment. These neighborhoods are characterized by historic architecture and higher owner-occupancy rates. Properties here align closely with the city median price of $196,150. The Scranton real estate market in these areas sees stable appreciation and attracts families seeking quality school districts and suburban amenities while remaining close to the city center.
Premium
Abington Heights and Clarks Summit serve as the premium markets within the greater Scranton area. While prices exceed the city median, the value proposition lies in school quality and lifestyle. For investors targeting the high-end rental market, these areas offer lower vacancy rates. However, the 26.1% price drop rate suggests that even in premium segments, sellers must remain competitive on pricing.