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High Homeownership and Rising Home Values in Rose Valley, Zip Code 19086: A Decade of Housing Market Trends
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 19086, located in Rose Valley, Pennsylvania, has experienced significant changes in homeownership, average home prices, and average rent prices over the past decade. This area has maintained a consistently high rate of homeownership, with a slight increase in average home prices and a moderate rise in average rent prices.
The homeownership rate in zip code 19086 has remained relatively stable, with a slight increase from 86% in 2013 to 87% in 2022. During this period, average home prices have shown a steady upward trend. In 2013, the average home price was $245,027, which increased to $417,141 by 2022, representing a substantial 70.2% growth over nine years. This trend suggests a strong correlation between the stable homeownership rates and the rising average home prices in the area.
Federal interest rates have played a significant role in homeownership trends. From 2013 to 2016, interest rates remained below 0.5%, coinciding with a period of stable homeownership rates around 87-89%. As interest rates began to rise from 2017 (1%) to 2019 (2.16%), homeownership rates remained steady at 87%, indicating resilience in the local housing market. The sharp drop in interest rates in 2020 (0.38%) and 2021 (0.08%) corresponded with a slight dip in homeownership to 85% in 2020, followed by a return to 87% in 2021 and 2022, despite rising interest rates (1.68% in 2022).
Renter percentages in zip code 19086 have remained relatively low, fluctuating between 11% and 15% from 2013 to 2022. Average rent prices have shown a gradual increase during this period. In 2013, the average rent was $1,157, which rose to $1,250 by 2022, representing an 8% increase over nine years. The population growth from 11,806 in 2013 to 12,888 in 2022 may have contributed to the slight upward pressure on rent prices, despite the consistently low percentage of renters in the area.
In 2023, the average home price in zip code 19086 reached $445,651, a 6.8% increase from 2022. This growth continued into 2024, with average home prices rising to $474,333, representing a further 6.4% increase. Notably, federal interest rates also saw significant increases, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates haven't yet shown a substantial impact on the area's housing market, as prices continue to rise.
Looking ahead, predictive models suggest that average home prices in zip code 19086 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 expected to follow a similar trend, with moderate increases driven by population growth and the area's consistently low renter percentage. However, the rate of increase for both home prices and rents may be tempered by broader economic factors and potential shifts in housing demand.
In summary, zip code 19086 has demonstrated a robust and stable housing market characterized by high homeownership rates, steadily increasing average home prices, and moderately rising average rent prices. The area has shown resilience to fluctuations in federal interest rates, maintaining strong homeownership levels even as rates have risen. The consistent growth in population and home values suggests a continued positive outlook for the local real estate market in the coming years.
