Sharswood, Philadelphia: Dramatic Home Value Increase Amidst Shifting Ownership Trends
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
DATA SOURCE
Sharswood, a neighborhood in Philadelphia, Pennsylvania, has experienced significant shifts in its housing landscape over the past decade. This area has seen notable changes in homeownership rates, average home prices, and average rent prices, reflecting broader economic and demographic trends.
The homeownership rate in Sharswood has shown a remarkable increase from 2013 to 2020, rising from 17% to 36%. This upward trend coincided with a substantial rise in average home prices. In 2013, the average home price was $48,806, which more than quadrupled to $213,129 by 2020. This sharp increase in home values likely contributed to the growing appeal of homeownership in the neighborhood. However, after 2020, there was a slight decline in homeownership rates, dropping to 28% by 2022, possibly due to the continued rise in home prices making purchases less affordable for some residents.
The relationship between federal interest rates and homeownership rates in Sharswood shows some interesting patterns. From 2013 to 2020, when interest rates were generally low (ranging from 0.09% to 2.16%), homeownership rates increased significantly. This aligns with the general trend of lower interest rates encouraging homeownership due to more affordable financing options. However, the slight decrease in homeownership after 2020 occurred despite continued low interest rates, suggesting other factors were at play.
Renter percentages in Sharswood have fluctuated inversely to homeownership rates, decreasing from 83% in 2013 to 64% in 2020, before rising again to 72% in 2022. Average rent prices have shown a general upward trend, increasing from $1,001 in 2013 to $1,046 in 2022, with some fluctuations in between. Notably, the population of Sharswood decreased significantly from 3,255 in 2013 to 2,366 in 2022, which may have influenced rental market dynamics.
In 2023 and 2024, Sharswood's housing market showed signs of cooling. The average home price decreased from $231,233 in 2022 to $215,996 in 2023, and further to $198,670 in 2024. This decline occurred despite rising federal interest rates, which reached 5.02% in 2023 and 5.33% in 2024, potentially impacting housing affordability and demand.
Looking ahead, predictive models suggest a potential stabilization or slight decrease in average home prices over the next five years, considering the recent cooling trend and high interest rates. Average rent prices may continue to increase moderately, driven by demand from those priced out of homeownership. However, these trends could be influenced by broader economic factors and local development initiatives.
In summary, Sharswood has undergone significant changes in its housing market, with a notable increase in homeownership rates and average home prices from 2013 to 2020, followed by a slight reversal of these trends. The recent cooling of the housing market, coupled with rising interest rates, suggests a potential period of adjustment in the coming years. These dynamics will likely continue to shape the neighborhood's housing landscape, affecting both homeowners and renters in this evolving Philadelphia community.
