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Average Home Values and Ownership in Philadelphia's Zip Code 19107: A Decade of Change in a Vibrant Urban Area
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
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Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Zip code 19107, located in Philadelphia, Pennsylvania, is a vibrant urban area known for its historical significance and cultural attractions. This neighborhood has experienced notable shifts in homeownership rates and property values over the past decade, with a general trend towards increased renting and rising housing costs.
The homeownership rate in zip code 19107 has remained relatively stable, fluctuating between 18% and 23% from 2013 to 2022. Despite this stability, average home prices have shown a consistent upward trend. In 2013, the average home price was $244,271, which increased to $333,099 by 2022, representing a substantial 36.4% growth over nine years. This rise in home values did not significantly impact homeownership rates, suggesting that other factors, such as local economic conditions or housing preferences, may have played a more significant role in determining ownership patterns.
Federal interest rates have historically influenced homeownership rates, with lower rates generally encouraging home buying. However, in zip code 19107, this relationship is not strongly evident. For instance, despite historically low interest rates between 2013 and 2016 (ranging from 0.09% to 0.4%), homeownership rates remained relatively constant. This suggests that in this urban area, other factors such as housing availability, local market dynamics, or demographic preferences may have a more significant impact on homeownership decisions than interest rates alone.
The renter population in zip code 19107 has consistently dominated the housing market, with renter-occupied units accounting for between 77% and 82% of all housing from 2013 to 2022. Average rent prices have shown a general upward trend, increasing from $1,310 in 2013 to $1,401 in 2022, a 7% rise over nine years. This trend aligns with the growing population, which increased from 12,064 in 2013 to 15,199 in 2022, a 26% growth. The sustained high percentage of renters, coupled with rising rents and population growth, indicates a strong and persistent demand for rental properties in this area.
In 2023 and 2024, the zip code 19107 housing market showed signs of cooling. The average home price decreased from $333,099 in 2022 to $314,598 in 2023, and further to $309,170 in 2024, representing a 7.2% drop over two years. This decline coincided with a significant increase in federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024, potentially dampening buyer demand and contributing to the price decrease.
Looking ahead, based on recent trends and current market conditions, we can project potential scenarios for the next five years. Average home prices may continue to experience modest declines or stabilize in the short term, influenced by high interest rates and economic factors. However, given the area's desirability and historical growth, a gradual recovery and return to appreciation is likely in the medium term. Rent prices are expected to continue their upward trajectory, albeit at a more moderate pace, driven by the area's consistent demand for rental properties and ongoing population growth.
In summary, zip code 19107 presents a dynamic housing market characterized by a strong rental sector, gradually appreciating property values, and resilience to broader economic factors such as interest rate changes. The recent cooling in home prices, coupled with high interest rates, may present both challenges and opportunities for potential homebuyers and investors in the coming years. The area's continued population growth and high renter occupancy suggest ongoing demand for housing, which is likely to support both the rental and ownership markets in the long term.
