Loading Content...
Rising Home Values and Shifting Ownership in Philadelphia's Zip Code 19154: A Decade of Change Near the Delaware River
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Zip code 19154, located in Philadelphia, Pennsylvania, has experienced significant changes in homeownership, average home prices, and average rent prices over the past decade. This area, known for its diverse residential neighborhoods, has seen a gradual shift in its housing market dynamics.
The homeownership rate in zip code 19154 has shown a slight decline over the years. In 2013, the area boasted an 81% homeownership rate, which gradually decreased to 76% by 2022. This 5% drop in homeownership coincided with a substantial increase in average home prices. In 2013, the average home price was $182,152, which rose steadily to reach $285,015 by 2022, representing a 56.5% increase over nine years.
The relationship between federal interest rates and homeownership rates in this zip code is notable. From 2013 to 2016, when interest rates were exceptionally low (ranging from 0.11% to 0.4%), homeownership rates remained stable at around 81%. However, as interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, homeownership rates started to decline, dropping to 76% by 2022. This trend aligns with the general principle that lower interest rates tend to encourage homeownership due to more affordable financing options.
Conversely, the percentage of renters in zip code 19154 has increased from 19% in 2013 to 24% in 2022. This 5% increase in renters correlates with a rise in average rent prices. The average rent price in 2013 was $1,176, which increased to $1,237 by 2022, representing a 5.2% increase. It's worth noting that the population in this zip code has also grown from 33,392 in 2013 to 35,347 in 2022, potentially contributing to the increased demand for rental properties.
Looking at the most recent data, the average home price in zip code 19154 reached $292,129 in 2023 and further increased to $303,227 in 2024. This represents a significant 6.4% increase in just two years. Simultaneously, federal interest rates have risen sharply, reaching 5.02% in 2023 and 5.33% in 2024, which could potentially impact future homeownership rates and home prices in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 19154 will continue to rise, potentially reaching around $350,000 by 2029. This projection is based on the consistent upward trend observed over the past decade. For average rent prices, we expect a more moderate increase, potentially reaching approximately $1,400 by 2029, considering the historical growth rate and the correlation with home prices.
In summary, zip code 19154 has experienced a gradual shift from homeownership to renting, with a 5% decrease in homeownership from 2013 to 2022. This trend has been accompanied by substantial increases in both average home prices (56.5% increase) and average rent prices (5.2% increase). The recent sharp rise in interest rates, coupled with continued growth in home prices, suggests that the housing market in this area may face some challenges in terms of affordability and homeownership rates in the coming years.
