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Average Home Values and Ownership in Zip Code 19026: Drexel Hill's Evolving Housing Market
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 19026, located in Drexel Hill, Pennsylvania, presents an interesting case study of housing trends in a suburban area. This zip code has experienced significant fluctuations in homeownership rates, average home prices, and average rent prices over the past decade. Overall, there has been a slight decline in homeownership, while average home prices and average rent prices have shown an upward trend.
The homeownership rate in zip code 19026 has experienced a gradual decline from 70% in 2013 to 66% in 2022. During this same period, average home prices have shown a notable increase. In 2013, the average home price was $166,254, which rose to $265,927 by 2022, representing a 60% increase over nine years. This inverse relationship suggests that rising home prices may have contributed to the decrease in homeownership rates, as potential buyers might have found it increasingly difficult to afford homes in the area.
Federal interest rates have played a significant role in shaping homeownership trends in zip code 19026. From 2013 to 2016, when interest rates were at historic lows (ranging from 0.09% to 0.40%), homeownership rates remained relatively stable around 66-70%. However, as interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, homeownership rates showed a slight decline. This trend aligns with the general principle that lower interest rates tend to encourage homeownership due to more affordable financing options.
The percentage of renters in zip code 19026 has increased from 30% in 2013 to 34% in 2022, mirroring the decline in homeownership. Concurrently, average rent prices have risen significantly. In 2013, the average rent was $1,079, which increased to $1,194 by 2022, representing a 10.7% increase over nine years. This upward trend in both renter percentage and average rent prices suggests a growing demand for rental properties in the area, possibly driven by those priced out of the homeownership market.
In 2023 and 2024, the housing market in zip code 19026 continued to evolve. The average home price in 2023 reached $278,925, a 4.9% increase from 2022. By 2024, it further rose to $294,948, marking a 5.7% increase from 2023. Notably, federal interest rates also saw significant increases, rising to 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact homebuying affordability and potentially influence future homeownership rates in the area.
Looking ahead, predictive models suggest that average home prices in zip code 19026 will continue to rise over the next five years, albeit at a potentially slower rate due to higher interest rates. Average rent prices are also expected to increase, driven by the growing renter population and the overall upward trend in housing costs. However, the rate of increase may moderate if economic conditions or housing policies change.
In summary, zip code 19026 has experienced a gradual shift towards renting, with homeownership rates declining slightly as average home prices have risen significantly. The interplay between federal interest rates, housing affordability, and demographic changes has shaped these trends. As the area continues to evolve, it will be crucial to monitor how these factors influence the local housing market and community composition in the coming years.
