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Home Values and Ownership in Zip Code 19012: A Decade of Change in Cheltenham Village
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
Cheltenham Village, located in zip code 19012 in Pennsylvania, presents an intriguing case study of homeownership and rental trends. This suburban community has maintained a high rate of homeownership over the past decade, with average home prices showing a substantial increase. Concurrently, average rent prices have also risen, albeit at a more moderate pace.
The ownership percentage in Cheltenham Village has remained relatively stable, fluctuating between 82% and 86% from 2013 to 2022. During this period, average home prices experienced significant growth. In 2013, the average home price was $215,586, which increased to $340,276 by 2022, representing a 57.8% increase over nine years. Notably, the most substantial growth occurred between 2020 and 2022, with average home prices jumping from $259,160 to $340,276, a 31.3% increase in just two years.
Federal interest rates have played a role in homeownership trends in Cheltenham Village. During periods of lower interest rates, such as from 2013 to 2016 when rates were below 0.5%, homeownership rates remained high, ranging from 84% to 86%. As interest rates began to rise from 2017 onwards, there was a slight decline in homeownership, dropping to 82% by 2022. This trend aligns with the general principle that lower interest rates tend to encourage homeownership due to more affordable financing options.
The renter percentage in Cheltenham Village has shown a gradual increase from 13% in 2014 to 18% in 2022. This rise in renters coincides with an increase in average rent prices. In 2013, the average rent was $1,166, which grew to $1,346 by 2022, an increase of 15.4% over nine years. The most significant jump in rent occurred between 2019 and 2021, rising from $1,280 to $1,582, a 23.6% increase in just two years. However, there was a slight decrease in average rent to $1,346 in 2022.
In 2023 and 2024, Cheltenham Village continued to see growth in average home prices. The average home price reached $353,477 in 2023 and further increased to $366,287 in 2024, representing a 7.6% growth from 2022 to 2024. This upward trend occurred despite a significant rise in federal interest rates, which reached 5.02% in 2023 and 5.33% in 2024.
Looking ahead, predictive models suggest that average home prices in Cheltenham Village will continue to rise over the next five years, albeit at a potentially slower rate than seen in recent years. Average rent prices are also expected to increase, likely keeping pace with or slightly outpacing inflation. These projections are based on historical trends and current economic indicators.
In summary, Cheltenham Village has maintained a high rate of homeownership despite rising home prices and increasing interest rates. The community has seen substantial growth in property values, particularly in recent years. While the renter population has grown slightly, it remains a minority. The area's ability to maintain high homeownership rates in the face of rising prices suggests a strong local economy and desirable living conditions. As we move forward, the interplay between housing prices, rent costs, and interest rates will continue to shape the residential landscape of this Pennsylvania community.
