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Bustleton's Housing Market: Rising Home Values and Ownership Rates Defy National Trends
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
Bustleton, a neighborhood in Philadelphia, Pennsylvania, has experienced notable shifts in its housing market and demographic composition over the past decade. This community has seen fluctuations in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market dynamics.
The homeownership rate in Bustleton has shown resilience and growth in recent years. From 2013 to 2022, the percentage of owner-occupied homes increased from 62% to 65%. This upward trend in homeownership coincided with a significant rise in average home prices. In 2013, the average home price in Bustleton was $207,906, which steadily increased to $346,835 by 2022, representing a substantial 66.8% growth over nine years.
The relationship between federal interest rates and homeownership rates in Bustleton demonstrates an interesting pattern. Despite historically low interest rates from 2013 to 2021 (ranging from 0.08% to 1.68%), homeownership rates remained relatively stable, fluctuating between 59% and 63%. However, as interest rates began to rise more sharply in 2022 (1.68%), homeownership actually increased to 65%, suggesting that local factors may have played a more significant role in driving homeownership than national interest rate trends during this period.
Renter percentages in Bustleton have shown an inverse relationship to homeownership rates, naturally decreasing as homeownership increased. The renter-occupied percentage peaked at 40% in 2016 and 2017, coinciding with average rent prices of $1,188 and $1,186 respectively. Interestingly, as the renter percentage declined to 35% by 2022, average rent prices continued to rise, reaching $1,073. This trend suggests that despite a decreasing renter population, demand for rental properties remained strong enough to support rising rent prices.
In 2023 and 2024, Bustleton's housing market continued to show strength. The average home price in 2023 was $354,807, further increasing to $362,981 in 2024. This represents a 4.7% increase from 2022 to 2024, indicating sustained growth in property values. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, which could potentially impact future homebuying activity in the neighborhood.
Looking ahead, predictive models suggest that Bustleton's housing market will likely continue its upward trajectory over the next five years. Average home prices are projected to increase by approximately 3-5% annually, potentially reaching around $420,000 by 2029. Average rent prices are expected to follow a similar trend, with estimated annual increases of 2-4%, potentially reaching approximately $1,250 per month by 2029.
In summary, Bustleton has demonstrated a robust housing market characterized by increasing homeownership rates and steadily rising property values. The neighborhood has shown resilience in the face of changing economic conditions, with homeownership rates improving even as interest rates have increased. The continued rise in both home prices and rent values suggests ongoing demand for housing in this Philadelphia neighborhood, pointing to its enduring appeal as a residential area.
