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Home Values and Ownership Trends in Penrose: A Decade of Market Shifts
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
Penrose, a Philadelphia neighborhood near the Delaware River, has experienced significant changes in its housing market over the past decade. The area has seen a notable shift from homeownership to renting, accompanied by substantial increases in both home and rent prices. The homeownership rate in Penrose has declined sharply from 77% in 2013 to 53% in 2022, a decrease of 24 percentage points. This decline coincides with a significant increase in average home prices, which rose from $100,037 in 2013 to $189,755 in 2022, representing an 89.7% increase over nine years. This inverse relationship suggests that rising home prices may have made homeownership less attainable for many residents. Federal interest rates have played a role in shaping homeownership trends in Penrose. From 2013 to 2016, interest rates were historically low, ranging from 0.11% to 0.4%, and homeownership rates remained relatively stable at 71-74%. However, as interest rates began to rise more steeply from 2017 onwards, reaching 1.68% by 2022, homeownership rates declined more rapidly, falling from 69% in 2017 to 53% in 2022. This trend aligns with the principle that higher interest rates can make mortgages less affordable, potentially discouraging homeownership.
As homeownership declined, the percentage of renters in Penrose increased from 23% in 2013 to 47% in 2022. This shift coincided with a substantial rise in average rent prices, which more than doubled from $553 in 2013 to $1,160 in 2021, before slightly decreasing to $991 in 2022. The population fluctuated during this period, peaking at 4,185 in 2017 before settling at 3,631 in 2022. The increasing renter population and rising rent prices suggest a growing demand for rental properties in the area.
Recent data shows that the average home price in Penrose slightly decreased from $189,755 in 2022 to $185,738 in 2024, a modest 2.1% decrease over two years. Concurrently, federal interest rates have risen significantly, reaching 5.33% in 2024. These higher interest rates may continue to impact homeownership trends in the neighborhood.
Predictive models forecast that average home prices in Penrose may experience moderate growth over the next five years, potentially reaching around $200,000 by 2029. Average rent prices are expected to continue their upward trajectory, possibly surpassing $1,300 per month within the same timeframe. These projections are based on historical trends and current market conditions.
In summary, Penrose has witnessed a significant shift from homeownership to renting over the past decade, accompanied by substantial increases in both average home prices and rent prices. The interplay between federal interest rates, housing affordability, and population dynamics has shaped these trends. As the neighborhood continues to evolve, it's likely to see further changes in its housing market, with a potential continuation of the renting trend and moderate growth in property values.
