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Glenwood's Housing Market: Rising Home Values and Shifting Ownership Trends
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Glenwood, a neighborhood in Philadelphia, Pennsylvania, has experienced significant shifts in its housing dynamics over the past decade. This area has seen notable changes in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market conditions.
The homeownership rate in Glenwood has steadily declined from 2013 to 2022. In 2013, 44% of residents owned their homes, but by 2022, this figure had dropped to just 22%. Concurrently, average home prices in the neighborhood have shown a dramatic increase. In 2013, the average home price was $24,750, but by 2022, it had risen to $82,607, representing a 234% increase over nine years. This inverse relationship between homeownership rates and average home prices suggests that rising property values may be pricing out potential homeowners in the area.
Federal interest rates have played a role in shaping homeownership trends in Glenwood. From 2013 to 2016, when interest rates were at historic lows (ranging from 0.11% to 0.40%), homeownership rates remained relatively stable, hovering around 43-48%. However, as interest rates began to rise from 2017 onwards, reaching 1.68% by 2022, homeownership rates declined more rapidly, dropping from 37% in 2017 to 22% in 2022. This trend aligns with the general principle that higher interest rates can make mortgages less affordable, potentially discouraging homeownership.
As homeownership declined, the percentage of renters in Glenwood increased from 56% in 2013 to 78% in 2022. Interestingly, average rent prices have not shown a consistent upward trend during this period. In 2013, the average rent was $803, peaking at $877 in 2016, before declining to $787 in 2022. This fluctuation in rent prices, despite the increasing proportion of renters, could be influenced by factors such as changes in housing quality, local economic conditions, or efforts to maintain affordability in the face of rising property values.
Looking at the most recent data, average home prices in Glenwood decreased slightly from $82,607 in 2022 to $76,289 in 2023, and then stabilized at $76,338 in 2024. This slight cooling in the housing market comes as federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, potentially dampening demand for home purchases.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in Glenwood may continue to stabilize or experience modest growth, influenced by the high interest rate environment. Average rent prices are likely to see moderate increases as the rental market remains competitive due to the high proportion of renters in the neighborhood.
In summary, Glenwood has witnessed a substantial shift from homeownership to renting over the past decade, accompanied by a significant increase in average home prices. The recent stabilization of home prices, coupled with high interest rates, suggests a potential cooling of the market. These trends highlight the evolving nature of Glenwood's housing market and the ongoing challenges in balancing affordability with property values.
