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Zip Code 19023: Rising Home Values and Shifting Ownership in Collingdale, Pennsylvania
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
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Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Zip code 19023, located in Collingdale, Pennsylvania, has experienced significant changes in homeownership rates and housing costs over the past decade. This densely populated area has seen a gradual decrease in owner-occupied housing, while average home prices and rent have generally trended upward, reflecting broader economic changes and local market dynamics.
The homeownership rate in zip code 19023 has shown a consistent decline from 2013 to 2022. In 2013, 57% of housing units were owner-occupied, but by 2022, this figure had dropped to 53%. This decline in homeownership coincided with a significant increase in average home prices. In 2013, the average home price was $63,257, but by 2022, it had more than doubled to $140,465. This inverse relationship suggests that rising home prices may have made homeownership less accessible for some residents.
Federal interest rates have played a crucial role in shaping homeownership trends in zip code 19023. From 2013 to 2016, when interest rates were extremely low (ranging from 0.11% to 0.40%), the homeownership rate remained relatively stable at around 56-57%. However, as interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), the homeownership rate declined to 54%. This trend aligns with the general principle that lower interest rates tend to encourage homeownership due to more affordable financing options.
The percentage of renters in zip code 19023 has increased from 43% in 2013 to 47% in 2022, mirroring the decline in homeownership. This shift occurred alongside fluctuations in average rent prices. In 2013, the average rent was $1,101, which decreased to $1,049 in 2014 before gradually rising to $1,110 in 2022. The population remained relatively stable during this period, increasing slightly from 21,726 in 2013 to 22,062 in 2022. The combination of rising home prices and relatively stable rent prices may have contributed to the increasing preference for renting in this area.
In 2023 and 2024, the housing market in zip code 19023 continued to evolve. The average home price rose to $149,509 in 2023 and further increased to $157,434 in 2024. This represents a 12.1% increase from 2022 to 2024. Concurrently, federal interest rates climbed significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates, combined with rising home prices, may further impact homeownership trends in the area.
Looking ahead, predictive models suggest that average home prices in zip code 19023 are likely to continue their upward trajectory over the next five years. Based on historical trends and current market conditions, average home prices are expected to potentially reach around $180,000 to $190,000 by 2029. Average rent prices are also projected to increase, potentially reaching $1,300 to $1,400 per month in the same timeframe. However, these projections may be influenced by various factors such as economic conditions, local development, and broader housing market trends.
In summary, zip code 19023 has experienced a notable shift from homeownership to renting over the past decade, driven by rising home prices and fluctuating interest rates. The inverse relationship between homeownership rates and average home prices highlights the challenges of affordability in the area. The rental market has grown in response, with a gradual increase in both the percentage of renters and average rent prices. Looking forward, the continuation of rising home prices and higher interest rates may further shape the housing landscape in this zip code, potentially reinforcing the trend towards renting unless mitigating factors emerge to improve housing affordability.
