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Home Values and Ownership Trends in Old City: A Decade of Change in Philadelphia's Historic Neighborhood
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Old City, Philadelphia, a historic neighborhood known for its cobblestone streets and role in America's founding, has experienced significant changes in its real estate landscape over the past decade. From 2013 to 2022, homeownership rates in Old City showed an overall increasing trend. The percentage of residents owning homes rose from 35% in 2013 to 41% in 2022. This upward trend coincided with fluctuations in average home prices, which increased from $325,705 in 2013 to $411,595 in 2022, representing a 26.4% rise over nine years. The relationship between homeownership rates and average home prices appears complex, with both generally trending upward despite some year-to-year variations.
Federal interest rates have influenced homeownership trends in Old City. From 2013 to 2016, when interest rates were extremely low (0.11% to 0.40%), homeownership rates remained relatively stable at 33-35%. As interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), homeownership rates actually increased, reaching 39% in 2019. This suggests that other factors, such as local economic conditions or housing policies, may have had a stronger influence on homeownership in Old City during this period.
Renter percentages in Old City have generally decreased as homeownership rates increased. The percentage of renters declined from 65% in 2013 to 59% in 2022. Average rent prices, however, have shown an overall upward trend, rising from $1,546 in 2013 to $1,742 in 2022, an increase of 12.7%. The population growth from 5,670 in 2013 to 7,693 in 2022 likely contributed to the pressure on rental prices, despite the decreasing percentage of renters.
In 2023, the average home price in Old City decreased to $387,975, a 5.7% drop from 2022. This decline continued into 2024, with the average home price further decreasing to $382,716. These price decreases coincided with a significant rise in federal interest rates, which jumped to 5.02% in 2023 and 5.33% in 2024. This inverse relationship between interest rates and home prices is a well-established economic trend, as higher borrowing costs often lead to decreased demand and lower property values.
Looking ahead, predictive models suggest that average home prices in Old City may stabilize or slightly decrease over the next five years if interest rates remain high. However, given the neighborhood's historical charm and desirable location, prices are likely to maintain a relatively high baseline. Rent prices are expected to continue their gradual upward trend, potentially reaching an average of around $1,900-$2,000 per month by 2029, driven by the area's ongoing popularity and limited housing supply.
In summary, Old City has experienced a notable increase in homeownership rates and property values over the past decade, despite fluctuations in the broader economic environment. The recent cooling of home prices in response to rising interest rates demonstrates the market's sensitivity to broader economic factors. As the neighborhood continues to evolve, the interplay between homeownership rates, property values, and rental trends will likely remain dynamic, reflecting both local and national economic conditions.
