Loading Content...
Rising Home Values and Shifting Ownership in Clearview, Philadelphia
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Clearview, a neighborhood in Philadelphia, Pennsylvania, has experienced significant changes in its housing market over the past decade. This analysis examines trends in homeownership rates, average home prices, and average rent prices, revealing noteworthy patterns and potential future developments. The homeownership rate in Clearview has shown a general declining trend from 2013 to 2022. In 2013, 71% of residents were homeowners, but by 2022, this figure had decreased to 61%. Conversely, the percentage of renters increased from 29% to 39% during the same period. This shift coincides with a substantial increase in average home prices. In 2013, the average home price in Clearview was $98,224, which rose dramatically to $194,066 by 2022, representing a 97.6% increase over nine years.
The relationship between federal interest rates and homeownership rates in Clearview follows a pattern often observed in real estate markets. From 2013 to 2016, when interest rates were exceptionally low (ranging from 0.09% to 0.4%), homeownership rates remained relatively stable at around 66%. However, as interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, homeownership rates declined to 61%. This trend suggests that higher interest rates may have made home purchases less affordable for some residents, potentially contributing to the shift towards renting.
The rental market in Clearview has also seen significant changes. Average rent prices increased from $870 in 2013 to $923 in 2022, a relatively modest 6.1% rise compared to the surge in home prices. Interestingly, the peak average rent of $1,144 was observed in 2018, coinciding with the highest population density of the analyzed period. Since then, both population and average rent have fluctuated, with the 2022 figures showing a slight decrease in both metrics compared to their peaks.
Looking at the most recent data, the average home price in Clearview reached $193,094 in 2023 and slightly decreased to $190,487 in 2024. This represents a minor correction of 1.3% from 2023 to 2024. Concurrently, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates could potentially impact homebuying activity in the near future.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in Clearview may continue to rise, albeit at a slower pace than observed in the previous decade. This projection is based on the historical trend of increasing home values and the neighborhood's apparent desirability. However, the rate of increase may be tempered by higher interest rates, which could limit affordability for potential buyers.
For average rent prices, the forecast suggests a potential increase over the next five years. This prediction is supported by the overall upward trend in rents observed from 2013 to 2022, despite some fluctuations. The growing renter population in Clearview may also contribute to increased demand for rental properties, potentially driving up average rents.
In summary, Clearview has experienced a significant shift from homeownership to renting over the past decade, accompanied by substantial increases in average home prices. The rental market has shown more moderate growth in prices but has absorbed a larger share of the population. Recent data indicates a slight cooling in the housing market, possibly influenced by rising interest rates. Looking ahead, both home prices and rents are expected to continue their upward trajectory, though potentially at a more moderate pace than in previous years.
