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Fishtown's Housing Transformation: Rising Home Values and Shifting Ownership Patterns
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Fishtown, a vibrant neighborhood in Philadelphia, Pennsylvania, has experienced significant changes in its housing market over the past decade. This area, known for its artistic community and trendy restaurants, has seen a gradual shift in its homeownership dynamics alongside fluctuating average home and rent prices. The homeownership rate in Fishtown has shown a slight decline over the years, moving from 67% in 2013 to 62% in 2022. This trend coincides with a substantial increase in average home prices, which rose from $187,338 in 2010 to $357,008 in 2022, representing a 90.6% increase over 12 years. The inverse relationship between homeownership rates and average home prices suggests that rising property values may be making it more challenging for residents to purchase homes in the neighborhood.
Federal interest rates have played a role in shaping homeownership trends in Fishtown. For instance, the period from 2010 to 2016 saw historically low interest rates, ranging from 0.1% to 0.4%. During this time, homeownership rates remained relatively stable, hovering around 66-67%. However, as interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, we observe a corresponding decline in homeownership rates to 62%. This trend aligns with the general principle that higher interest rates can make mortgages less affordable, potentially discouraging homeownership.
The renter population in Fishtown has increased from 33% in 2013 to 38% in 2022. This rise in renters correlates with an increase in average rent prices, which grew from $1,136 in 2013 to $1,529 in 2022, a 34.6% increase over nine years. The neighborhood's population also expanded during this period, from 16,455 in 2013 to 18,712 in 2022, potentially contributing to the increased demand for rental properties and subsequent rise in rent prices.
In 2023 and 2024, we observe a slight dip in average home prices, with values of $351,790 and $358,354 respectively. This minor fluctuation occurs against the backdrop of significantly higher interest rates, which reached 5.02% in 2023 and 5.33% in 2024. These higher interest rates may be tempering home price growth and potentially impacting homeownership rates.
Looking ahead, based on historical trends and current market conditions, we can project that average home prices in Fishtown may continue to rise moderately over the next five years, potentially reaching around $400,000 by 2029. Average rent prices are also likely to increase, possibly surpassing $1,800 per month within the same timeframe. However, these projections are subject to various economic factors and local market conditions.
In summary, Fishtown has experienced a gradual decline in homeownership rates alongside significant increases in both average home prices and rent prices. The interplay between federal interest rates, population growth, and property values has shaped the neighborhood's housing market dynamics. As Fishtown continues to evolve, it's likely to maintain its appeal, potentially driving further changes in its housing landscape.
