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Zip Code 19138: Philadelphia's Resilient Housing Market Sees Average Home Values Rise 127% Over Nine Years
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
Philadelphia's zip code 19138 presents an intriguing case study of homeownership and rental trends in a dynamic urban setting. This area has experienced significant fluctuations in ownership rates and property values over the past decade, reflecting broader economic shifts and local market conditions.
The homeownership rate in zip code 19138 has shown remarkable resilience, maintaining a relatively high level despite market fluctuations. In 2013, the ownership rate stood at 70%, and it reached its peak at 73% in 2018. However, by 2022, it had returned to 70%. This stability in homeownership is particularly noteworthy when considering the substantial increase in average home prices during this period. Average home prices rose from $79,752 in 2013 to $181,085 in 2022, representing a striking 127% increase over nine years.
The relationship between federal interest rates and homeownership rates in this zip code reveals an interesting pattern. Despite historically low interest rates from 2013 to 2016 (ranging from 0.09% to 0.40%), homeownership rates remained relatively stable, hovering around 70%. This suggests that factors beyond interest rates, such as local economic conditions or housing supply, may have played a significant role in homeownership decisions in this area.
Renter percentages in zip code 19138 have shown slight variations, generally inverse to homeownership trends. In 2013, renters accounted for 28% of occupied housing units. This figure peaked at 33% in 2021 before settling back to 30% in 2022. Average rent prices have seen considerable fluctuations. Starting at $1,003 in 2013, they reached a high of $1,238 in 2021, before decreasing to $1,011 in 2022. These rent price changes don't always align directly with renter percentage shifts, suggesting other factors like housing supply and overall population changes influence the rental market.
Looking at the most recent data, average home prices in zip code 19138 experienced a decline in 2023 and 2024, dropping to $168,424 and $164,260 respectively. This decrease coincides with a significant rise in federal interest rates, which reached 5.02% in 2023 and 5.33% in 2024. These higher interest rates likely contributed to the cooling of the housing market in this area.
Applying predictive models to forecast 5-year trends, we anticipate a potential stabilization or modest increase in average home prices, assuming interest rates remain relatively stable. The recent price correction may create opportunities for new homebuyers, potentially supporting homeownership rates. For rent prices, we expect a gradual increase, closely tied to overall economic conditions and housing demand in the Philadelphia area.
In summary, zip code 19138 has demonstrated a robust homeownership market despite significant price appreciation over the past decade. The area has maintained a high rate of owner-occupied housing, even in the face of rising home prices and fluctuating interest rates. The rental market has shown more volatility in both occupancy rates and prices, reflecting the dynamic nature of urban housing markets. As we move forward, the interplay between interest rates, housing affordability, and local economic factors will continue to shape the residential landscape of this Philadelphia neighborhood.
