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Rhawnhurst Home Values Soar as Ownership Rates Decline: A Decade of Change in Philadelphia 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
Rhawnhurst, a neighborhood in northeast Philadelphia, Pennsylvania, has experienced significant changes in homeownership rates and housing prices over the past decade. This analysis examines the trends and factors influencing these changes from 2013 to 2024. The homeownership rate in Rhawnhurst has declined from 58% in 2013 to 50% in 2022. Concurrently, average home prices have risen substantially, increasing from $164,264 in 2013 to $298,183 in 2022, an 81.5% increase over nine years. This inverse relationship between homeownership rates and home prices reflects broader economic trends and local market dynamics.
Federal interest rates have played a crucial role in shaping homeownership trends in Rhawnhurst. From 2013 to 2016, interest rates remained low, between 0.1% and 0.4%, coinciding with stable homeownership rates of 55%. However, as interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, homeownership rates started to decline. This suggests that higher interest rates may have made mortgage financing less affordable for potential buyers in the neighborhood.
As homeownership rates decreased, the percentage of renters in Rhawnhurst increased from 42% in 2013 to 50% in 2022. This shift corresponded with a rise in average rent prices, from $920 in 2013 to $1,041 in 2022, a 13.2% increase. The growth in the renter population, from 11,015 in 2013 to 13,583 in 2022, likely contributed to the upward pressure on rent prices.
In 2023 and 2024, Rhawnhurst's housing market showed signs of stabilization. The average home price in 2023 was $297,919, a slight decrease from 2022, but it rebounded to $300,367 in 2024. This modest growth occurred despite significantly higher federal interest rates of 5.02% in 2023 and 5.33% in 2024, indicating resilience in the local housing market.
Projecting forward based on historical trends and current market conditions, Rhawnhurst's housing market is likely to continue evolving over the next five years. Average home prices are expected to maintain their upward trajectory, albeit at a more moderate pace. By 2029, average home prices could reach approximately $325,000 to $350,000. Average rent prices may also continue to rise, potentially reaching $1,200 to $1,300 per month in the same timeframe, driven by ongoing demand for rental properties in the area.
In conclusion, Rhawnhurst has undergone a transition from homeownership to renting over the past decade, accompanied by substantial increases in both home prices and rents. The interplay between federal interest rates, local economic conditions, and housing affordability has shaped these trends. As the neighborhood progresses, it will likely continue to see growth in property values and rental rates, reflecting its enduring appeal as a residential area in Philadelphia.
