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Zip Code 19106: Rising Home Values and Ownership in Philadelphia's Historic District
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 19106, located in Philadelphia, Pennsylvania, has experienced significant changes in its housing market over the past decade. This historic area, known for its cobblestone streets and proximity to Independence Hall, has seen fluctuations in homeownership rates and steady increases in both average home prices and average rent prices.
The homeownership rate in zip code 19106 has shown a gradual upward trend from 2013 to 2022. In 2013, the homeownership rate was 44%, and it increased to 47% by 2022. This rise in homeownership coincided with a general increase in average home prices. In 2013, the average home price was $360,998, and it rose to $444,381 by 2022, representing a 23% increase over this period. The relationship between homeownership rates and average home prices suggests that despite rising prices, more residents were able to enter the housing market.
Federal interest rates play a crucial role in homeownership trends. From 2013 to 2016, interest rates remained low, ranging from 0.11% to 0.40%, which likely contributed to the initial increase in homeownership from 44% to 44%. As interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), we see a continued increase in homeownership rates, reaching 46% in 2019. This suggests that other factors, such as local economic conditions or housing policies, may have offset the potential negative impact of rising interest rates on homeownership.
The percentage of renters in zip code 19106 has slightly decreased from 56% in 2013 to 53% in 2022. Despite this decrease, average rent prices have steadily increased. In 2013, the average rent was $1,512, and it rose to $1,792 by 2022, an 18.5% increase. This upward trend in rent prices occurred alongside population growth, with the population increasing from 10,335 in 2013 to 12,766 in 2022. The rising population likely contributed to increased demand for rental properties, supporting the growth in average rent prices despite a slight decrease in the percentage of renters.
Looking at the most recent data for 2023 and 2024, we see a significant shift in the housing market. The average home price in zip code 19106 decreased to $415,921 in 2023 and further to $408,295 in 2024. This represents a 6.4% decrease from the 2022 average home price. Concurrently, federal interest rates have risen sharply to 5.02% in 2023 and 5.33% in 2024, potentially influencing the decline in home prices.
Applying predictive models to forecast 5-year trends, we anticipate a potential stabilization or slight decrease in average home prices, given the current higher interest rate environment. Average rent prices are expected to continue their upward trajectory, albeit at a slower pace, due to the area's sustained population growth and desirability.
In summary, zip code 19106 has demonstrated resilience in its housing market over the past decade. The area has seen a gradual increase in homeownership rates despite rising home prices, suggesting strong local demand. The rental market has remained robust, with increasing average rents even as the proportion of renters slightly decreased. Recent data indicates a cooling in the housing market, likely influenced by rising interest rates. Moving forward, the interplay between interest rates, population growth, and local economic factors will continue to shape the housing landscape in this historic Philadelphia neighborhood.
