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Fort Washington: Rising Home Values and Shifting Ownership in a Historic Pennsylvania Suburb
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
Fort Washington, Pennsylvania, is a vibrant community located in Montgomery County. This suburban area has experienced fluctuations in homeownership rates and housing prices over the past decade. The city has seen a general trend of increasing average home prices and average rent prices, while homeownership rates have shown some variability.
The homeownership rate in Fort Washington has experienced slight fluctuations over the years. In 2013, the homeownership rate stood at 84%. It remained stable until 2015 when it began to decline, reaching its lowest point of 77% in 2018. However, the trend reversed in subsequent years, with homeownership increasing to 82% by 2022. Concurrently, average home prices have shown a steady upward trend. In 2016, the average home price was $459,917, and it consistently increased year over year, reaching $641,734 by 2022. This represents a substantial 39.5% increase in average home prices over six years.
The relationship between federal interest rates and homeownership rates in Fort Washington appears to follow the general trend observed nationally. From 2013 to 2015, when interest rates were historically low (0.11% to 0.13%), homeownership rates remained high at 84% to 82%. As interest rates began to rise from 2016 onwards, reaching 1.83% in 2018, homeownership rates declined to 77%. However, the subsequent drop in interest rates to 0.38% in 2020 coincided with an increase in homeownership to 81%, demonstrating the inverse relationship between interest rates and homeownership.
Renter percentages in Fort Washington have shown an inverse relationship to homeownership rates. In 2013, the renter percentage was 15%, which remained stable until 2015. From 2016 to 2018, as homeownership declined, the renter percentage increased, peaking at 21% in 2018. Average rent prices have generally trended upward during this period. In 2013, the average rent was $1,570, which increased to $1,774 by 2018, representing a 13% increase over five years. The population growth from 9,936 in 2013 to 10,532 in 2018 may have contributed to the increased demand for rentals and the subsequent rise in average rent prices.
In 2023, the average home price in Fort Washington reached $680,928, showing a continued upward trend. The federal interest rate for 2023 was 5.02%, significantly higher than in previous years. Moving into 2024, the average home price has further increased to $706,292, while the federal interest rate has risen slightly to 5.33%. These higher interest rates may impact homeownership trends and affordability in the near future.
Looking ahead, predictive models suggest that average home prices in Fort Washington are likely to continue their upward trajectory over the next five years, albeit at a potentially slower pace due to higher interest rates. Average rent prices are also expected to increase, driven by population growth and housing demand. However, the rate of increase may moderate if homeownership becomes more attractive due to potential future interest rate adjustments.
In summary, Fort Washington has experienced a general trend of increasing average home and rent prices over the past decade. Homeownership rates have shown resilience, rebounding from a low in 2018 to 82% in 2022, despite rising home prices. The inverse relationship between federal interest rates and homeownership rates has been evident, with lower rates generally corresponding to higher homeownership. As the community continues to grow and evolve, these housing market dynamics will play a crucial role in shaping Fort Washington's residential landscape in the coming years.
