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Rising Home Values and Ownership Trends in East Parkside, Philadelphia
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
East Parkside, a neighborhood in Philadelphia, Pennsylvania, has experienced significant changes in homeownership rates and housing prices over the past decade. This area, known for its proximity to Fairmount Park and historical significance, reflects broader economic trends and local development patterns in its housing market dynamics. From 2013 to 2020, East Parkside saw a general upward trend in homeownership rates, increasing from 30% to 39%. This rise coincided with a substantial increase in average home prices, which more than doubled from $54,429 in 2016 to $126,124 in 2022, representing a 132% increase over six years. The correlation suggests that as property values appreciated, more residents may have been motivated to invest in homeownership. Federal interest rates played a significant role in shaping homeownership trends in East Parkside. The period from 2013 to 2020 saw historically low interest rates, ranging from 0.09% to 0.38%, likely contributing to the increase in homeownership by making mortgages more affordable. However, the sharp rise in interest rates to 5.02% in 2023 and 5.33% in 2024 may have begun to impact homeownership rates, as evidenced by the decline to 33% in 2022.
Renter percentages in East Parkside have inversely mirrored homeownership trends. The renter-occupied rate decreased from 72% in 2015 to 61% in 2020, before rising again to 67% in 2022. Average rent prices have shown volatility, peaking at $941 in 2013 and reaching a low of $571 in 2021. The fluctuations in rent prices do not show a clear correlation with renter percentages, suggesting that other factors, such as local economic conditions and housing supply, may have more significant influences on rental occupancy rates.
In 2023 and 2024, average home prices in East Parkside experienced a slight decline, with values of $117,777 and $119,239 respectively. This represents a 6.6% decrease from the 2022 average of $126,124. The higher interest rates in these years likely contributed to this cooling in the housing market, as higher borrowing costs typically reduce affordability and demand.
Looking ahead, predictive models suggest that average home prices in East Parkside may continue to experience moderate growth over the next five years, albeit at a slower pace than the rapid appreciation seen from 2016 to 2022. Average rent prices are projected to stabilize and potentially increase slightly, reflecting ongoing demand for rental properties in the area.
In summary, East Parkside has undergone significant changes in its housing market dynamics. The neighborhood has seen a notable increase in homeownership rates and average home prices from 2013 to 2020, likely influenced by low interest rates and increasing property values. However, recent rises in interest rates and a slight cooling in home prices suggest a potential shift in market conditions. The rental market has shown resilience, with fluctuating but relatively stable average rent prices. As the neighborhood continues to evolve, these housing trends will play a crucial role in shaping its demographic and economic landscape.
