Loading Content...
Horsham: Shifting Home Values and Ownership Trends in Philadelphia's Suburban Community
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Horsham, Pennsylvania, a suburban community in Montgomery County located approximately 20 miles north of Philadelphia, has experienced significant changes in its housing market over the past decade. The area has seen notable shifts in homeownership and rental patterns, accompanied by fluctuations in average home and rent prices. The overall trend indicates a gradual decrease in homeownership rates, while average rent prices have generally increased.
From 2013 to 2022, Horsham witnessed a substantial decline in homeownership rates. In 2013, 77% of housing units were owner-occupied, but by 2022, this figure had dropped to 68%. This 9 percentage point decrease represents a significant shift in the local housing market. Concurrently, the percentage of renter-occupied units increased from 22% in 2013 to 32% in 2022, indicating a growing preference or necessity for rental housing in the area.
The trend in homeownership rates appears to have an inverse relationship with federal interest rates. For instance, in 2013, when homeownership was at 77%, the federal interest rate was 0.11%. As interest rates began to rise, homeownership rates declined. By 2018, when the federal interest rate reached 1.83%, homeownership had dropped to 69%. This pattern suggests that higher interest rates may have made home purchases less affordable for some residents, contributing to the shift towards renting.
Regarding rental trends, the average rent in Horsham has shown an overall upward trajectory. In 2013, the average rent was $1,284, and it increased to $1,328 by 2022, representing a 3.4% rise over nine years. However, this increase was not linear. There were fluctuations, with the average rent reaching its peak at $1,402 in 2021 before slightly decreasing in 2022. The rising rent prices, coupled with the increasing percentage of renters, suggest a growing demand for rental properties in the area.
As of 2023 and 2024, we have actual data on average home prices and interest rates. In 2023, the average home price in Horsham was $419,820, with a federal interest rate of 5.02%. Moving into 2024, we see a slight increase in average home prices to $421,460, while the federal interest rate has risen to 5.33%. This upward trend in both home prices and interest rates could potentially impact homeownership rates and rental demand in the coming years.
Looking ahead, based on the observed trends and current market conditions, we can project potential scenarios for the next five years. If the current patterns continue, we might expect to see a further modest increase in average home prices, potentially reaching around $430,000 to $440,000 by 2029. Average rent prices could also continue their upward trend, potentially surpassing $1,500 per month within the next five years if current economic conditions persist.
In summary, Horsham has experienced a notable shift from homeownership to renting over the past decade, with homeownership rates declining from 77% to 68% between 2013 and 2022. This trend has been accompanied by fluctuations in average rent prices and appears to be influenced by changes in federal interest rates. The recent data from 2023 and 2024 shows a continuing increase in both home prices and interest rates, which may further impact the housing market dynamics in this Pennsylvania community.
