Philly’s homeownership rates have fallen by almost 8 percent since the housing market tanked, according to a new report.
Apartment List’s latest findings reveal that the homeownership rate in Philadelphia fell from 73.1 percent to 65.4 percent from 2007-2016. Homeownership rates dropped the most among African Americans by 3.9 percent.
The apartment website looked at homeownership numbers from the American Community Survey dating back to 2007, the start of the recession.
Despite the fact that homeownership rates are still love, home values have returned to normal levels since then—historic highs, actually here in Philly. In addition, the report found that compared to renters, homeowners’ costs are way down.
As the graph reveals, the difference between renters’ and owners’ costs continues to gradually widen. The report states:
The median national rent increased by about 4%, from $901 to $934. The difference is not huge (only $33), but still meaningful, especially considering that inflation-adjusted renter incomes fell by 14% during that time period.
So what’s the takeaway? In Philadelphia, with home values rising and high-end construction making up nearly 70 percent of the rental market, it may be some time until renters can afford the transition into homeownership.
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