Loading Content...
Southwest Schuylkill: Rising Home Values and Shifting Ownership in Philadelphia's Dynamic Neighborhood
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Southwest Schuylkill, a neighborhood in Philadelphia, Pennsylvania near the Schuylkill River and the University of Pennsylvania, has experienced significant changes in its housing market over the past decade. The area has seen a general trend of decreasing homeownership, rising average home prices, and fluctuating average rent prices. These changes have reshaped the neighborhood's demographic and economic landscape. The homeownership rate in Southwest Schuylkill has steadily declined from 54% in 2013 to 43% in 2022. This decrease in homeownership coincides with a substantial increase in average home prices. In 2013, the average home price was $43,615, which rose dramatically to $134,477 by 2022, representing a 208% increase over nine years. This inverse relationship suggests that rising home prices may have made homeownership less accessible for many residents.
Federal interest rates have influenced homeownership trends in the neighborhood. From 2013 to 2016, when interest rates were historically low (ranging from 0.11% to 0.4%), homeownership rates remained relatively stable, hovering around 51-54%. However, as interest rates began to rise from 2017 (1%) to 2019 (2.16%), homeownership rates started to decline more rapidly, dropping from 53% to 49%. This trend aligns with the general principle that higher interest rates can make mortgages less affordable, potentially discouraging homeownership.
As homeownership declined, the percentage of renters in Southwest Schuylkill increased from 46% in 2013 to 57% in 2022. Interestingly, average rent prices have not shown a consistent upward trend despite the increasing demand for rentals. The average rent was $963 in 2013, reached a low of $926 in 2016, then peaked at $1,116 in 2021 before decreasing to $992 in 2022. This fluctuation in rent prices, despite the growing renter population, could be influenced by factors such as new housing developments or changes in the local economy.
The most recent data shows that the average home price in Southwest Schuylkill decreased to $112,879 in 2023 and further to $110,705 in 2024. This represents a significant drop from the peak of $139,231 in 2021. Concurrently, federal interest rates have risen sharply to 5.02% in 2023 and 5.33% in 2024, which are the highest rates seen in over a decade. These higher interest rates likely contribute to the cooling of home prices by making mortgages more expensive for potential buyers.
Predictive models forecasting 5-year trends anticipate that average home prices in Southwest Schuylkill may continue to experience moderate declines or stabilize in the short term due to the current high interest rate environment. However, as the neighborhood continues to develop and attract new residents, particularly those affiliated with nearby universities, a gradual increase in home prices over the medium to long term may occur. Average rent prices are expected to remain relatively stable with potential for slight increases, driven by the continued demand for rental properties in the area.
In summary, Southwest Schuylkill has undergone significant changes in its housing market over the past decade. The neighborhood has seen a shift from homeownership to renting, accompanied by substantial increases in average home prices until recent years. The interplay between federal interest rates, home prices, and rental demand has shaped these trends. Moving forward, the neighborhood's housing market is likely to be influenced by broader economic factors, local development initiatives, and its proximity to educational institutions.
