Homeownership In Philadelphia Tumbles, Report Says

The homeownership rate in Philadelphia declined sharply between 2000 and 2012, primarily as a consequence of the prolonged and sweeping real estate downturn that followed the bursting of the housing bubble in 2006-07, according to a study released Wednesday by the Pew Charitable Trusts.

Although Philadelphia’s homeownership rate remains high among the nation’s 30 largest cities, the 7.1 percentage-point drop in owner-occupied units – from 59.3 percent to 52.2 percent, or by 47,082 – was surpassed only by Phoenix, which suffered record foreclosures and price declines when the market swooned, the Pew study shows.

Stagnant incomes, rising home prices, and tight credit, all products of the recession, have cut into owner-occupied numbers, the study showed.

In addition, young professionals who once were the chief source of first-time buyers are either wary of homeownership or burdened by student-loan debt.

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Pew Report: Philadelphia’s Middle Class Is Shrinking

Map of Pennsylvania highlighting Philadelphia County (Photo credit: Wikipedia)

The Philadelphia middle class, a backbone of economic vitality that once made up the majority of residents in most of the city’s neighborhoods, has declined in steep numbers since 1970, from 59 percent to 42 percent by 2010, according to a report released Monday, the first of its kind.

The precipitous decline of adults within this long-celebrated class occurred widely across the city and most sharply before 2000, sparing only chunks of Far Northeast Philadelphia and Roxborough and smaller pockets elsewhere. Those areas remained majority middle-class as of a few years ago, said the Pew Charitable Trusts, which spearheaded the study.

The data capture what has been sensed and dreaded by policymakers for years: Philadelphia is decidedly poorer than when it was a manufacturing powerhouse, losing even a greater share of higher-taxpaying middle-class residents than the nation as a whole, and failing even to see increases in its upper-class population to match other cities that fared better.

Whether middle-class Philadelphians fell into a lower-income class, moved into the suburbs, or died is not shown by Pew’s analysis, as researchers have found such detailed tracking to be elusive.

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