Loading Content...
Rising Home Values and Shifting Ownership in East Passyunk: A Decade of Housing Market Trends
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
East Passyunk, a vibrant neighborhood in Philadelphia, Pennsylvania, has experienced notable shifts in its housing market over the past decade. This analysis examines the interplay between homeownership rates, average home prices, and average rent prices, revealing intriguing patterns and potential future trends.
The ownership percentage in East Passyunk has fluctuated over the years, with a general downward trend from 2013 to 2022. In 2013, the homeownership rate stood at 61%, but by 2022, it had decreased to 54%. During this same period, average home prices in the neighborhood saw a significant increase. In 2013, the average home price was $191,296, and by 2022, it had risen to $333,990, representing a substantial 74.6% increase over nine years.
The relationship between federal interest rates and homeownership rates in East Passyunk shows some correlation. As interest rates remained low from 2013 to 2016 (ranging from 0.11% to 0.4%), homeownership rates remained relatively stable, hovering around 60-61%. However, as interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, homeownership rates started to decline, dropping to 54% by 2022. This trend aligns with the general principle that lower interest rates tend to encourage homeownership due to more affordable financing options.
Examining renter percentages and average rent prices reveals an interesting pattern. The percentage of renters increased from 39% in 2013 to 46% in 2022. Correspondingly, average rent prices also saw an upward trend, rising from $1,225 in 2013 to $1,286 in 2022, an increase of 5%. However, it's worth noting that the population of East Passyunk fluctuated during this period, peaking at 10,275 in 2015 before declining to 8,992 in 2022. This population change may have influenced the demand for rental properties and, consequently, rent prices.
Looking at the most recent data for 2023 and 2024, we see that average home prices in East Passyunk experienced a slight dip in 2023 to $328,432, followed by an increase to $338,459 in 2024. This represents a 3.05% increase from 2023 to 2024. Concurrently, federal interest rates rose significantly, reaching 5.02% in 2023 and 5.33% in 2024, which are the highest rates observed in the dataset since the early 2000s.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in East Passyunk will continue to rise, albeit at a more moderate pace. By 2029, average home prices could potentially reach around $380,000 to $400,000, assuming current economic conditions persist. For average rent prices, we project a continued upward trend, potentially reaching $1,400 to $1,500 per month by 2029.
In summary, East Passyunk has experienced a notable decrease in homeownership rates alongside a significant increase in average home prices over the past decade. The rise in federal interest rates appears to have contributed to the decline in homeownership. Meanwhile, the renter population has grown, accompanied by a moderate increase in average rent prices. The recent uptick in average home prices, despite high interest rates, suggests continued demand for housing in this Philadelphia neighborhood. These trends indicate that East Passyunk remains an attractive area for both homeowners and renters, with potential for further growth in property values and rental rates in the coming years.
