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Folsom: Resilient Homeownership Amid Rising Prices
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
Folsom, Pennsylvania, is a suburban community located in Delaware County, just outside of Philadelphia. This small but densely populated area has experienced notable shifts in its housing market over the past decade, with interesting trends in homeownership rates, average home prices, and average rent prices.
The homeownership rate in Folsom has remained relatively stable, fluctuating between 74% and 78% from 2013 to 2022. During this period, average home prices have shown a significant upward trend. In 2010, the average home price was $187,591, which decreased to $175,781 by 2014. However, from 2015 onwards, there was a steady increase, with prices reaching $285,068 by 2022. This represents a substantial 61.7% increase in average home prices over the 12-year period.
When examining the relationship between federal interest rates and homeownership rates, we observe that despite historically low interest rates between 2010 and 2021 (ranging from 0.08% to 2.16%), homeownership rates in Folsom remained relatively stable. This suggests that other factors, such as local economic conditions or housing supply, may have had a more significant influence on homeownership rates in this area than national interest rates.
The renter population in Folsom has remained relatively consistent, comprising between 22% and 26% of the total households from 2013 to 2022. Average rent prices have shown some fluctuation over this period. In 2013, the average rent was $1,242, which decreased to $1,123 in 2014. There was then a general upward trend, with average rent reaching $1,279 in 2017. However, by 2022, the average rent had settled at $1,200, representing a slight overall decrease from the 2013 figure. This trend in rent prices does not appear to be strongly correlated with the percentage of renters, suggesting that other factors such as local housing policies or economic conditions may be influencing rent prices.
In 2023 and 2024, we see a continuation of the upward trend in average home prices in Folsom. The average home price rose to $298,669 in 2023 and further increased to $315,056 in 2024. This represents a 10.5% increase from 2022 to 2024. Concurrently, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024, which are the highest rates seen since 2007.
Looking ahead, based on the historical data and current trends, we can predict that average home prices in Folsom will continue to rise over the next five years, albeit potentially at a slower rate due to higher interest rates. We might expect average home prices to reach around $350,000 to $375,000 by 2029. For rent prices, given the historical fluctuations and recent stability, we might anticipate a modest increase, potentially reaching an average of $1,300 to $1,400 per month by 2029.
In summary, Folsom has maintained a relatively stable homeownership rate despite significant increases in average home prices over the past decade. The rental market has shown more stability in both the proportion of renters and average rent prices. The recent sharp increase in interest rates, coupled with continually rising home prices, may present challenges for potential homebuyers in the coming years, potentially leading to shifts in the balance between homeowners and renters in this community.
