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Rising Home Values and Declining Ownership: Harrowgate's Housing Market Transformation
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
Harrowgate, a vibrant neighborhood in Philadelphia, Pennsylvania, has experienced significant shifts in its housing market over the past decade. This area, known for its historical significance and diverse community, has seen notable changes in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local developments.
The homeownership rate in Harrowgate has shown a gradual decline over the years. In 2013, 54% of residents owned their homes, but by 2022, this figure had decreased to 46%. This downward trend in homeownership coincides with a substantial increase in average home prices. In 2013, the average home price in Harrowgate was $33,435. By 2022, it had skyrocketed to $101,258, representing a remarkable 203% increase over nine years.
The relationship between federal interest rates and homeownership rates in Harrowgate follows a generally inverse pattern. For instance, as interest rates remained low between 2013 and 2016 (ranging from 0.11% to 0.40%), homeownership rates stayed relatively stable, fluctuating between 47% and 54%. However, as interest rates began to rise more significantly from 2017 onwards, reaching 1.68% by 2022, homeownership rates showed a more pronounced decline, dropping to 46% in 2022.
Conversely, the percentage of renters in Harrowgate has increased from 46% in 2013 to 54% in 2022. This rise in renter-occupied housing correlates with an increase in average rent prices. In 2013, the average rent was $916 per month. By 2022, it had risen to $1,097, marking a 19.8% increase. The population of Harrowgate peaked at 16,745 in 2017 before declining to 14,675 in 2022, which may have influenced the rental market dynamics.
Looking at the most recent data, the average home price in Harrowgate decreased to $88,511 in 2023, followed by a slight increase to $90,307 in 2024. This recent trend occurs against the backdrop of significantly higher interest rates, which rose to 5.02% in 2023 and 5.33% in 2024. These higher rates likely contributed to the cooling of home prices after the rapid appreciation seen in previous years.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in Harrowgate may experience moderate growth, potentially reaching around $110,000 by 2029. This projection considers the recent price stabilization and the impact of higher interest rates. For average rent prices, we expect a continued upward trajectory, potentially reaching approximately $1,300 per month by 2029, driven by the increasing preference for renting in the area.
In summary, Harrowgate has witnessed a shift towards a renter-majority community over the past decade, accompanied by substantial increases in both home values and rent prices. The recent cooling in home prices, influenced by rising interest rates, suggests a potential stabilization in the housing market. However, the persistent demand for rental properties indicates that the neighborhood may continue to see growth in its rental sector in the coming years.
