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Zip Code 19151: Home Values and Ownership Trends in a Densely Populated Philadelphia Area
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 19151, located in Philadelphia, Pennsylvania, presents an intriguing case study of housing trends. This area has experienced notable fluctuations in homeownership rates, average home prices, and average rent prices over the past decade. The zip code covers 2.15 square miles and had a population of 33,011 in 2022, showcasing a dense urban environment.
The homeownership rate in zip code 19151 has shown slight variations over the years. In 2013, the ownership rate stood at 64%, remaining relatively stable until 2020 when it peaked at 66%. However, by 2022, it had decreased to 62%. Interestingly, this decline in homeownership coincided with a significant increase in average home prices. From 2013 to 2022, average home prices rose from $103,332 to $197,523, representing a substantial 91% increase over this period.
Federal interest rates have played a crucial role in shaping homeownership trends. The period from 2013 to 2016 saw historically low interest rates, ranging from 0.09% to 0.4%. During this time, homeownership rates remained stable at around 64%. As interest rates began to rise from 2017 onwards, reaching 2.16% in 2019, we observed a slight increase in homeownership to 65%. However, the sharp rise in interest rates to 1.68% in 2022 coincided with a drop in homeownership to 62%, suggesting that higher financing costs may have deterred potential buyers.
Renter percentages in zip code 19151 have shown a gradual increase over the years, from 35% in 2013 to 38% in 2022. This trend aligns with the decline in homeownership rates. Interestingly, despite the increase in renter percentages, average rent prices have fluctuated. The average rent peaked at $1,177 in 2013 and gradually decreased to $1,046 in 2022, representing an 11% decrease over this period. This trend might be attributed to changes in housing supply or local economic factors affecting rental market dynamics.
In 2023 and 2024, we see a slight reversal in average home prices. The average home price in 2023 was $190,820, a 3.4% decrease from 2022. This trend continued into 2024, with the average home price further decreasing to $187,544. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, potentially contributing to the cooling of the housing market.
Looking ahead, our predictive models suggest a potential stabilization in average home prices over the next five years, with modest annual growth rates of 1-2%. Average rent prices are forecasted to increase gradually, potentially reaching $1,200 by 2029. These predictions are based on current trends and economic indicators.
In summary, zip code 19151 has experienced a notable increase in average home prices over the past decade, despite recent cooling. Homeownership rates have slightly decreased, while renter percentages have increased. Average rent prices have shown a counterintuitive decrease despite the rise in renter percentages. The interplay between federal interest rates, housing prices, and ownership rates highlights the complex dynamics of the local real estate market. Moving forward, we anticipate a period of stabilization in both the housing and rental markets, with modest growth expected in both sectors.
