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Tacony's Housing Market: Rising Home Values Amidst Stable Ownership Rates
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Tacony, a historic neighborhood in Northeast Philadelphia, Pennsylvania, has experienced notable shifts in its housing market and demographic composition over the past decade. This analysis examines the trends in homeownership, average home prices, and average rent prices in Tacony, providing insights into the neighborhood's real estate dynamics. The homeownership rate in Tacony has shown fluctuations between 2013 and 2022. In 2013, 63% of residents owned their homes. This percentage peaked at 69% in 2016 before settling at 63% in 2022. Concurrently, average home prices in the neighborhood have demonstrated a consistent upward trend. In 2013, the average home price was $102,031. By 2022, this figure had nearly doubled to $200,869, representing a significant appreciation in property values.
The relationship between federal interest rates and homeownership rates in Tacony reveals some interesting patterns. In 2016, when homeownership reached its peak at 69%, the federal interest rate was relatively low at 0.4%. As interest rates began to rise in subsequent years, reaching 1.68% in 2022, homeownership rates stabilized around 63-66%. This trend suggests that lower interest rates may have contributed to higher homeownership rates by making mortgages more affordable.
Renter percentages in Tacony have also fluctuated over the years, inversely mirroring the homeownership trends. The percentage of renters decreased from 35% in 2013 to 31% in 2016, before rising again to 37% in 2022. Average rent prices have generally increased during this period, albeit with some volatility. In 2013, the average rent was $1,004, which rose to $1,145 in 2019 before decreasing slightly to $990 in 2022. The population of Tacony has also seen changes, growing from 18,368 in 2013 to 18,996 in 2022, which may have influenced rental demand and prices.
Looking at the most recent data, the average home price in Tacony slightly decreased to $197,559 in 2023 but is projected to increase to $199,993 in 2024. This occurs against the backdrop of significantly higher federal interest rates, which rose to 5.02% in 2023 and are expected to reach 5.33% in 2024. These higher interest rates may impact affordability and could potentially influence future homeownership rates in the neighborhood.
Applying predictive models to forecast 5-year trends, we anticipate a continued but moderate increase in average home prices in Tacony. Based on historical data and current market conditions, average home prices could potentially reach around $225,000 to $235,000 by 2029. For average rent prices, the forecast suggests a potential increase to approximately $1,200 to $1,300 per month over the same period, assuming stable economic conditions and continued population growth in the area.
In summary, Tacony has experienced significant growth in property values over the past decade, with average home prices nearly doubling between 2013 and 2022. Homeownership rates have remained relatively stable in recent years, despite fluctuations in federal interest rates. The rental market has shown resilience, with renter percentages increasing slightly and rent prices generally trending upward, albeit with some recent moderation. As Tacony continues to evolve, these housing market trends will play a crucial role in shaping the neighborhood's future demographic and economic landscape.
