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Zip Code 19127: Resilient Home Values and Ownership Trends in Philadelphia's Evolving Housing Market
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 19127, located in Philadelphia, Pennsylvania, has experienced dynamic shifts in its housing market over the past decade. This area has seen fluctuations in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market conditions.
The homeownership rate in zip code 19127 has shown some variability over the years. In 2013, the percentage of owner-occupied homes was 43%. This figure remained relatively stable until 2018 when it increased to 46%. However, by 2022, it had settled back to 44%. During this period, average home prices in the area demonstrated a general upward trend. In 2013, the average home price was $227,993. By 2022, this figure had increased significantly to $311,788, representing a 36.8% increase over nine years.
Federal interest rates have played a role in homeownership trends. From 2013 to 2016, when interest rates were extremely low (ranging from 0.11% to 0.40%), homeownership rates remained relatively stable. As interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), there was a slight increase in homeownership, possibly due to buyers rushing to secure mortgages before rates climbed further. The dramatic drop in interest rates in 2020 (0.38%) and 2021 (0.08%) coincided with a temporary dip in homeownership to 40% in 2020, followed by a recovery to 44% by 2022 as rates began to rise again.
Renter percentages in zip code 19127 have also fluctuated over the years, generally moving inversely to homeownership rates. In 2013, 57% of housing units were renter-occupied. This percentage increased slightly to 59% in 2016 before decreasing to 54% in 2018 and 2019. By 2022, the renter percentage stood at 56%. Average rent prices have shown an overall upward trend, albeit with some fluctuations. In 2013, the average rent was $1,414. It peaked at $1,609 in 2018 before slightly decreasing to $1,552 in 2022. The population in the zip code has also fluctuated, reaching a high of 6,924 in 2016 before decreasing to 6,198 in 2022, which may have influenced rental market dynamics.
As of 2024, the average home price in zip code 19127 has reached $320,166, showing continued growth from the 2022 figure. The federal interest rate for 2024 stands at 5.33%, a significant increase from the near-zero rates seen in the early 2020s. This higher interest rate environment may impact future homebuying decisions and potentially slow the rate of price appreciation.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 19127 will continue to rise, albeit at a more moderate pace due to higher interest rates. We project that by 2029, average home prices could reach approximately $350,000 to $370,000. For average rent prices, we expect a continued upward trajectory, potentially reaching $1,800 to $1,900 per month by 2029, assuming steady economic growth and demand for rental properties in the area.
In summary, zip code 19127 has demonstrated resilience in its housing market, with both homeownership rates and average home prices showing overall growth despite some fluctuations. The rental market has remained robust, with a slight increase in the proportion of renters and steadily rising average rent prices. The interplay between federal interest rates, population changes, and local economic factors will continue to shape the housing landscape in this Philadelphia neighborhood. As we look to the future, we expect moderate growth in both home prices and rental rates, with potential for shifts in the ownership-to-rental ratio depending on broader economic conditions and housing policy changes.
