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Zip Code 19124: Rising Home Values and Shifting Ownership Trends in Philadelphia
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 19124, located in Philadelphia, Pennsylvania, has experienced significant changes in homeownership rates and housing prices over the past decade. This area has shown a remarkable shift towards increased homeownership, coupled with substantial growth in average home values. The ownership percentage in zip code 19124 has shown a notable upward trend, rising from 51% in 2016 to 64% in 2022. This increase in homeownership coincides with a significant rise in average home prices. In 2016, the average home price was $82,997, which steadily increased to $157,304 by 2022, representing an impressive 89.5% growth over six years. This trend suggests a strong correlation between rising home values and increasing homeownership rates in the area.
Federal interest rates have played a crucial role in shaping homeownership trends in zip code 19124. The period from 2016 to 2020 saw relatively low interest rates, ranging from 0.4% to 2.16%. During this time, homeownership rates increased from 51% to 60%. The exceptionally low interest rate of 0.08% in 2021 coincided with a further increase in homeownership to 63%. This trend aligns with the general principle that lower interest rates tend to encourage homeownership by making mortgage financing more affordable.
Conversely, as homeownership rates increased, the percentage of renters in zip code 19124 decreased from 48% in 2016 to 36% in 2022. Interestingly, despite this decrease in the renter population, average rent prices showed a moderate increase. The average rent rose from $961 in 2016 to $934 in 2022, with some fluctuations in between, peaking at $999 in 2021. This trend suggests that even with fewer renters, demand for rental properties remained relatively strong, possibly due to the overall population growth in the area from 70,309 in 2016 to 72,911 in 2022.
In 2023, the average home price in zip code 19124 slightly decreased to $156,076, marking a small dip from the 2022 price. However, by 2024, the average home price rebounded to $157,836, surpassing the 2022 level. This recent trend occurs against the backdrop of significantly higher federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024. These higher rates may impact future homeownership trends and housing affordability in the area.
Looking ahead, based on the historical data and current trends, we can project continued growth in average home prices for zip code 19124 over the next five years. The average home price is expected to reach approximately $175,000 by 2029, assuming a moderate annual growth rate. Average rent prices are also likely to see a modest increase, potentially reaching around $1,050 per month by 2029, reflecting ongoing demand for rental properties despite the shift towards homeownership.
In summary, zip code 19124 has demonstrated a strong trend towards increased homeownership, accompanied by substantial growth in average home values. The area has shown resilience in its housing market, with rising home prices even in the face of recent interest rate increases. The rental market, while shrinking in terms of percentage, has maintained relatively stable prices. These trends point to a dynamic and evolving housing landscape in this Philadelphia neighborhood, with potential for continued growth and changes in the coming years.
