Rental trends in Center City have mirrored the changes in homeownership. As homeownership increased, the percentage of renters decreased from 68% in 2013 to 47% in 2022. Interestingly, average rent prices have shown significant volatility. In 2013, the average rent was $606, peaking at $760 in 2014 before declining to $505 in 2022. This represents a 33.6% decrease in average rent from 2014 to 2022, despite the overall decrease in the proportion of renters.

Looking at the most recent data, the average home price in Center City continued to rise in 2023, reaching $39,596. However, 2024 saw a slight decrease to $38,036, a 3.9% drop from the previous year. This decline coincides with a further increase in federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024. These higher interest rates may be cooling the housing market, leading to the observed price decrease.

Applying predictive models to forecast future trends, we anticipate that average home prices in Center City may continue to experience moderate fluctuations over the next five years. The current high interest rate environment could lead to a period of price stabilization or slight decreases in the short term. However, as the market adjusts, we may see a gradual return to price appreciation, albeit at a slower pace than in recent years. Rent prices, which have shown significant volatility, may stabilize or see modest increases as the rental market adjusts to changing demand and economic conditions.

In summary, Center City has experienced a notable increase in homeownership rates over the past decade, coupled with rising home prices until very recently. The rental market has seen a decrease in the proportion of renters and significant fluctuations in average rent prices. Recent increases in interest rates appear to be influencing both the ownership and rental markets, potentially leading to a period of adjustment in both home prices and rent levels in the coming years.