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Elmwood's Real Estate Evolution: Home Values Double Amid Shifting Ownership 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
Elmwood, a Philadelphia neighborhood known for its diverse population and historic architecture, has experienced significant changes in its housing market over the past decade. The community has seen notable shifts in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market dynamics. The homeownership rate in Elmwood has shown a general downward trend since 2017. In 2017, the neighborhood had a 58% homeownership rate, which gradually declined to 49% by 2022. This shift coincided with a substantial increase in average home prices. The average home price in Elmwood rose from $77,747 in 2017 to $132,793 in 2022, representing a significant 70.8% increase over five years. The relationship between federal interest rates and homeownership rates in Elmwood appears to follow established economic patterns. When interest rates remained low between 2013 and 2016, ranging from 0.1% to 0.4%, homeownership rates in Elmwood were relatively stable at 54-57%. However, as interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, homeownership rates in Elmwood started to decline, dropping from 58% in 2017 to 49% in 2022.
As homeownership rates decreased, the percentage of renters in Elmwood increased from 42% in 2017 to 51% in 2022. This rise in renters coincided with fluctuations in average rent prices. The average rent was $1,050 in 2017, decreased to $905 in 2018, and then rose again to $1,008 in 2022. Elmwood's population also grew during this period, from 15,242 in 2017 to 16,566 in 2022, potentially contributing to the increased demand for rental properties. In 2023 and 2024, Elmwood's housing market continued to evolve. The average home price in 2023 was $125,321, showing a slight decrease from 2022. This trend continued into 2024, with the average home price further declining to $122,787. These price decreases occurred despite rising federal interest rates, which reached 5.02% in 2023 and 5.33% in 2024. Predictive models suggest that average home prices in Elmwood may continue to experience moderate fluctuations over the next five years. Given the recent downward trend, prices could stabilize or potentially decrease slightly, barring any significant economic changes. Average rent prices are projected to remain relatively stable, with potential for small increases in line with inflation and demand. In conclusion, Elmwood has witnessed a shift towards a more renter-dominated market over the past decade, with homeownership rates declining as average home prices increased substantially. Recent data shows a slight cooling in the housing market, with average home prices decreasing despite rising interest rates. These trends highlight the dynamic nature of Elmwood's housing market and its responsiveness to broader economic factors.
