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Rising Home Values and Ownership in Passyunk Square: A Decade of Change in Philadelphia's Foodie Haven
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
Passyunk Square, a vibrant neighborhood in Philadelphia, Pennsylvania, has experienced significant changes in its real estate landscape over the past decade. Known for its diverse community and thriving food scene, this area has seen notable shifts in homeownership rates, average home prices, and average rent prices. The ownership percentage in Passyunk Square has shown a gradual increase from 2013 to 2022. In 2013, 55% of residents were homeowners, and this figure rose to 59% by 2022. This upward trend in homeownership coincides with a substantial increase in average home prices. In 2013, the average home price was $239,142, and by 2022, it had risen to $380,202, representing a 59% increase over nine years.
The relationship between federal interest rates and homeownership rates in Passyunk Square follows a well-established trend. As interest rates remained low between 2013 and 2021, ranging from 0.08% to 1.68%, homeownership rates increased from 55% to 59%. This aligns with the general principle that lower interest rates make homeownership more accessible due to more affordable financing options.
Renter percentages in Passyunk Square have seen a corresponding decline as homeownership increased. In 2013, 45% of residents were renters, which decreased to 41% by 2022. Despite this decline, average rent prices have risen significantly. The average rent increased from $1,005 in 2013 to $1,460 in 2022, a 45% increase. This trend suggests that while fewer people are renting, those who do are paying considerably more.
In 2023 and 2024, we observe a slight dip followed by a rebound in average home prices. The average home price in 2023 was $377,929, showing a minor decrease from 2022. However, in 2024, the price increased to $387,164, indicating a recovery and continued growth in the real estate market. Notably, interest rates have risen sharply to 5.02% in 2023 and 5.33% in 2024, which may impact future homeownership trends.
Looking ahead, predictive models suggest that average home prices in Passyunk Square will continue to rise over the next five years, albeit at a potentially slower rate due to higher interest rates. Average rent prices are also expected to increase, driven by ongoing demand and the neighborhood's desirability. However, the rate of increase may moderate as the market adjusts to economic conditions and housing supply changes.
In summary, Passyunk Square has demonstrated a clear trend towards increased homeownership and rising property values over the past decade. The neighborhood has seen significant appreciation in both home prices and rent, reflecting its growing popularity. While recent interest rate hikes may slow the pace of growth, the area's strong fundamentals suggest continued demand for both owned and rented properties in the coming years.
