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Rising Home Values and Shifting Ownership in Parkwood Manor, 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
Parkwood Manor, a neighborhood in Philadelphia, Pennsylvania, has experienced significant changes in its housing market over the past decade. This analysis explores the trends in homeownership, average home prices, and average rent prices, revealing a dynamic interplay between these factors. The homeownership rate in Parkwood Manor has shown a gradual decline from 2013 to 2022. In 2013, 73% of residents owned their homes, but by 2022, this figure had decreased to 65%. Conversely, the percentage of renters increased from 26% in 2013 to 35% in 2022. This shift coincides with a substantial rise in average home prices. In 2013, the average home price was $172,468, which steadily increased to $280,313 by 2022, representing a 62.5% increase over nine years.
The relationship between federal interest rates and homeownership rates in Parkwood Manor follows a well-established trend. As interest rates remained low from 2013 to 2016 (ranging from 0.09% to 0.4%), homeownership rates remained relatively stable, hovering around 71-73%. However, as interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, homeownership rates declined to 65%. This trend aligns with the general principle that lower interest rates encourage homeownership due to more affordable financing options.
Renter percentages and average rent prices in Parkwood Manor have shown an interesting correlation. As the renter population increased from 26% in 2013 to 35% in 2022, average rent prices fluctuated. In 2013, the average rent was $1,177, which decreased to $1,054 in 2016 before rising again to $1,248 in 2022. This trend suggests that while more residents are renting, the market has somewhat stabilized rent prices, possibly due to increased supply meeting the growing demand.
In 2023 and 2024, Parkwood Manor continued to see growth in average home prices. The average home price reached $287,863 in 2023 and further increased to $298,346 in 2024. This represents a 6.4% increase from 2022 to 2024. Notably, federal interest rates also saw a significant rise, reaching 5.02% in 2023 and 5.33% in 2024, which could potentially impact future homeownership rates.
Looking ahead, predictive models forecast continued growth in both average home prices and rent prices over the next five years. Average home prices are expected to surpass $330,000 by 2029, while average rent prices could reach $1,400 per month. These projections are based on historical trends and current market conditions.
In summary, Parkwood Manor has experienced a shift towards renting, with homeownership rates declining as average home prices have significantly increased. The neighborhood has also seen fluctuations in average rent prices, which have generally trended upward. The recent steep rise in interest rates may further impact homeownership trends, potentially leading to a continued increase in the renter population. As the housing market in Parkwood Manor continues to evolve, these trends will likely shape the neighborhood's demographic and economic landscape in the coming years.
