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Zip Code 19103: Average Home Values and Ownership Trends in Philadelphia's Urban Core
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 19103, located in the heart of Philadelphia, Pennsylvania, has experienced significant changes in its housing market over the past decade. This urban area has seen fluctuations in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market dynamics.
The ownership percentage in zip code 19103 has remained relatively stable, fluctuating between 29% and 34% from 2013 to 2022. During this period, average home prices have shown a general upward trend. In 2013, the average home price was $438,587, which increased to $551,017 by 2022, representing a 25.6% increase over nine years. This growth in home values, however, did not correspond with a significant increase in homeownership rates, suggesting that other factors were influencing the market.
Federal interest rates have played a role in shaping homeownership trends in zip code 19103. For instance, in 2013, when interest rates were at a low 0.11%, the homeownership rate was 32%. As interest rates remained low through 2020 (0.38%), homeownership briefly dipped to 29% before rising again to 31% in 2022, despite interest rates climbing to 1.68%. This suggests that while interest rates influence homeownership, local market conditions and other factors also play significant roles in determining ownership rates in this urban area.
Renter percentages in zip code 19103 have shown a slight upward trend, increasing from 66% in 2013 to 69% in 2022. Concurrently, average rent prices have also risen, from $1,642 in 2013 to $1,751 in 2022, an increase of 6.6% over nine years. The population of the zip code grew from 21,421 in 2013 to 25,544 in 2022, a 19.2% increase. This population growth, combined with the area's urban appeal, likely contributed to the sustained demand for rental properties and the gradual increase in average rent prices.
In 2023 and 2024, the housing market in zip code 19103 experienced a notable shift. Average home prices decreased from $551,017 in 2022 to $507,398 in 2023, and further to $492,823 in 2024, representing a total decline of 10.6% over two years. This downturn coincided with a significant increase in interest rates, which rose to 5.02% in 2023 and 5.33% in 2024. These higher interest rates likely contributed to the cooling of the housing market and the decrease in average home prices.
Looking ahead, predictive models suggest that average home prices in zip code 19103 may continue to face downward pressure in the short term due to the current high interest rate environment. However, given the area's desirability and historical resilience, prices are expected to stabilize and potentially begin a gradual recovery within the next five years. Average rent prices are projected to remain relatively stable with modest increases, supported by the area's consistent demand for rental properties and ongoing population growth.
In summary, zip code 19103 has demonstrated a complex interplay between homeownership rates, average home prices, and average rent prices. While homeownership rates have remained relatively stable, average home prices showed significant growth until 2022, followed by a notable decline in 2023 and 2024. The rental market has shown steady growth in both occupancy and prices, reflecting the area's popularity and increasing population. The recent rise in interest rates has impacted the housing market, and its effects are likely to continue shaping trends in the coming years.
