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Washington Square: Home Values and Ownership Trends in a Historic Philadelphia 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
Washington Square, a historic neighborhood in Philadelphia, Pennsylvania, has experienced notable changes in its housing market over the past decade. This analysis examines the trends in homeownership rates, average home prices, and rental market dynamics from 2010 to 2024.
The homeownership rate in Washington Square has remained relatively stable, fluctuating between 21% and 25% from 2013 to 2022. Despite this consistency, average home prices have shown a steady upward trend. In 2010, the average home price was $313,491, which increased to $419,885 by 2022, representing a substantial 33.9% growth over 12 years. This price appreciation occurred despite relatively stable homeownership rates, suggesting strong demand for properties in the area.
Federal interest rates have influenced homeownership trends in Washington Square. From 2010 to 2016, when interest rates were consistently low (ranging from 0.09% to 0.40%), homeownership rates remained relatively stable. As interest rates began to rise from 2017 (1.00%) to 2019 (2.16%), there was a slight increase in homeownership, reaching 25% in 2018. However, the dramatic drop in interest rates in 2020 (0.38%) and 2021 (0.08%) did not significantly impact homeownership rates, which remained at 24% and 23% respectively.
Renter occupancy has been the dominant housing tenure in Washington Square, consistently accounting for over 75% of occupied housing units. The percentage of renters increased from 77% in 2013 to 79% in 2014, before settling at 77% in 2022. Average rent prices have generally trended upward, rising from $1,271 in 2013 to $1,410 in 2022, an 11% increase. This rise in rent prices coincided with a population growth from 12,615 in 2013 to 15,184 in 2022, indicating strong rental demand in the area.
In 2023 and 2024, a shift in the housing market was observed. The average home price in Washington Square decreased from $419,885 in 2022 to $400,445 in 2023, and further to $391,700 in 2024. This represents a 6.7% decline over two years. Concurrently, federal interest rates rose significantly, reaching 5.02% in 2023 and 5.33% in 2024, which likely contributed to the cooling of home prices.
The following trends are expected over the next five years: Average home prices may continue to face downward pressure in the short term due to high interest rates, but are likely to stabilize and potentially show modest growth as the market adjusts. Average rent prices are projected to continue their upward trajectory, albeit at a more moderate pace, driven by the area's high renter population and ongoing demand for rental properties. The ratio of renters to owners is expected to remain relatively stable, with a slight bias towards increased renting if home purchasing power remains constrained by high interest rates.
Washington Square has demonstrated resilience in its housing market, with consistent demand for both owned and rented properties. The recent cooling in home prices, coupled with rising interest rates, may present both challenges and opportunities for potential homebuyers and investors in the coming years. The neighborhood's high proportion of renters and steadily increasing rent prices suggest a continued strong rental market, which could be attractive for property investors.
