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Feltonville's Housing Market: Soaring Home Values and Ownership Rates Defy Interest Rate 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
Feltonville, a neighborhood in Philadelphia, Pennsylvania, has experienced notable shifts in its housing market over the past decade. This diverse community has seen significant changes in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market dynamics.
The homeownership rate in Feltonville has shown a remarkable increase in recent years. In 2013, 53% of residents owned their homes, but by 2022, this figure had risen to 66%. This upward trend in homeownership coincided with a substantial increase in average home prices. In 2013, the average home price in Feltonville was $47,481. By 2022, it had risen dramatically to $123,235, representing a 159% increase over nine years.
The relationship between federal interest rates and homeownership rates in Feltonville appears to follow established trends. As interest rates remained low from 2013 to 2020, ranging from 0.09% to 0.38%, homeownership in the neighborhood increased from 53% to 59%. This aligns with the general principle that lower interest rates make mortgages more affordable, encouraging homeownership.
Conversely, the percentage of renters in Feltonville has decreased over time. In 2013, 47% of residents were renters, but by 2022, this had fallen to 34%. Despite this decrease in the renter population, average rent prices have shown an overall upward trend. In 2013, the average rent was $952, and by 2022 it had increased to $958, with fluctuations in between. The highest average rent was recorded in 2021 at $1,047.
Looking at the most recent data, the average home price in Feltonville continued to rise in 2023, reaching $125,285. In 2024, it further increased to $131,702. This growth occurred despite a significant rise in federal interest rates, which stood at 5.02% in 2023 and 5.33% in 2024. These higher interest rates typically make borrowing more expensive, yet the local housing market has remained robust.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in Feltonville will continue to rise, albeit at a potentially slower rate due to higher interest rates. The average home price could reach approximately $150,000 by 2029. Average rent prices are also expected to increase moderately, potentially reaching around $1,100 per month in the same timeframe.
In summary, Feltonville has seen a significant shift towards homeownership, with a 13 percentage point increase from 2013 to 2022. This trend has been accompanied by a substantial rise in average home prices, more than doubling over the same period. Despite a decrease in the renter population, average rent prices have remained relatively stable with a slight upward trend. The neighborhood's housing market has shown resilience in the face of rising interest rates, suggesting strong local demand and potentially improving neighborhood conditions.
