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Franklinville's Rising Home Values and Shifting Ownership: A Decade of Change
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
Franklinville, a neighborhood in Philadelphia, Pennsylvania, has experienced significant changes in its housing market over the past decade. This area has seen a notable shift in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market dynamics.
The homeownership rate in Franklinville has seen a steady decline from 2013 to 2022. In 2013, 48% of residents owned their homes, but by 2022, this figure had dropped to 34%. Conversely, the average home prices in the neighborhood have shown a remarkable upward trend. In 2013, the average home price was $23,655, which increased dramatically to $80,723 by 2022, representing a 241% increase over this period. This inverse relationship between homeownership rates and average home prices suggests that rising property values may be making homeownership less attainable for many residents.
Federal interest rates have played a significant role in shaping homeownership trends in Franklinville. From 2013 to 2016, interest rates remained below 0.5%, coinciding with a period of relatively stable homeownership rates. However, as interest rates began to rise from 2017 (1%) to 2019 (2.16%), there was a noticeable decline in homeownership percentages. The sharp drop in interest rates in 2020 (0.38%) and 2021 (0.08%) did not immediately reverse the downward trend in homeownership, possibly due to economic uncertainties during the pandemic.
As homeownership rates declined, the percentage of renters in Franklinville increased from 52% in 2013 to 66% in 2022. During this period, average rent prices showed an overall upward trend, albeit with some fluctuations. In 2013, the average rent was $795, which rose to $952 by 2021, before slightly decreasing to $914 in 2022. The population of Franklinville has remained relatively stable, fluctuating between 6,912 and 8,397 residents over the decade, which suggests that the increase in renters is primarily due to the shift from homeownership rather than a significant influx of new residents.
In 2023, the average home price in Franklinville experienced a slight decrease to $75,348, while federal interest rates rose significantly to 5.02%. Moving into 2024, we see a rebound in average home prices to $83,934, with interest rates further increasing to 5.33%. This recent data suggests a resilient housing market despite higher borrowing costs.
Looking ahead, predictive models forecast a continued upward trend in both average home prices and rent prices over the next five years. Home prices are expected to surpass the $90,000 mark by 2026 and potentially reach $100,000 by 2029. Average rent prices are projected to exceed $1,000 per month by 2026, with steady increases thereafter.
In summary, Franklinville has experienced a significant shift from homeownership to renting over the past decade, accompanied by substantial increases in both average home prices and rent prices. The neighborhood's housing market has shown resilience in the face of rising interest rates, with recent data indicating continued growth in property values. These trends suggest a changing demographic landscape in Franklinville, with potential implications for long-term community dynamics and affordability.
