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Fairhill's Housing Market: Rising Home Values and Ownership Trends Amid Rent Volatility
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
Fairhill, a neighborhood in Philadelphia, Pennsylvania, has experienced significant changes in its housing market over the past decade. This analysis examines the trends in homeownership, average home prices, and average rent prices in the area. The homeownership rate in Fairhill has shown an overall upward trend from 2013 to 2022. In 2013, the ownership rate was 47%, which remained relatively stable until 2018 when it increased to 56%. By 2022, the ownership rate settled at 51%. Concurrently, average home prices in the neighborhood have demonstrated a substantial increase. From 2016 to 2022, average home prices more than doubled, rising from $29,010 to $66,591.
The relationship between federal interest rates and homeownership rates in Fairhill appears to follow the general trend of lower interest rates encouraging homeownership. For instance, as interest rates remained low from 2013 to 2017 (ranging from 0.11% to 1%), homeownership rates in Fairhill remained stable at around 47%. The slight increase in interest rates to 1.83% in 2018 coincided with a jump in homeownership to 56%, possibly due to buyers seeking to secure mortgages before further rate increases.
Renter percentages in Fairhill have shown an inverse relationship to homeownership rates. The renter-occupied percentage decreased from 53% in 2013 to 44% in 2018, before rising again to 49% in 2022. Average rent prices in the neighborhood have fluctuated over the years. In 2013, the average rent was $786, which peaked at $955 in 2014 before gradually declining to $802 in 2022. This trend in rent prices does not seem to directly correlate with the renter percentage, suggesting other factors, such as local economic conditions or housing supply, may play a role in determining rent prices.
Looking at the most recent data, average home prices in Fairhill decreased to $59,112 in 2023 and then increased slightly to $62,168 in 2024. This recent trend occurs against the backdrop of rising federal interest rates, which reached 5.02% in 2023 and 5.33% in 2024. These higher interest rates may contribute to a moderation in home price growth as borrowing becomes more expensive for potential buyers.
Applying predictive models to forecast 5-year trends, we can expect average home prices in Fairhill to continue a moderate upward trajectory, albeit at a slower pace than the rapid growth seen in previous years. The high interest rate environment may temper price increases. For rent prices, the forecast suggests a potential stabilization or slight increase, considering the historical fluctuations and the current balance between owner-occupied and renter-occupied units.
In summary, Fairhill has seen a general trend towards increased homeownership over the past decade, accompanied by significant growth in average home prices. Rent prices have been more volatile but have generally remained within a consistent range. The neighborhood's housing market appears to be influenced by broader economic factors such as interest rates, as well as local dynamics of supply and demand. The recent moderation in home price growth and the current high-interest-rate environment suggest a period of potential stabilization in the Fairhill housing market in the near future.
