Loading Content...
Rising Home Values and Declining Ownership in Zip Code 19406: King of Prussia's Changing Housing Landscape
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
King of Prussia, located in zip code 19406 in Pennsylvania, has experienced significant demographic and housing market changes over the past decade. This suburban community, known for its expansive shopping mall and proximity to Philadelphia, has seen a gradual shift in its residential composition and property values.
The homeownership rate in King of Prussia has shown a declining trend, dropping from 61% in 2015 to 53% in 2022. This decrease in homeownership coincides with a substantial increase in average home prices. In 2015, the average home price was $281,020, which rose steadily to reach $420,961 by 2022, representing a 49.8% increase over seven years. This inverse relationship between homeownership rates and home prices suggests that rising property values may be making homeownership less accessible for some residents.
Federal interest rates have played a role in shaping homeownership trends in King of Prussia. The period from 2015 to 2022 saw historically low interest rates, ranging from 0.13% to 1.68%. Despite these favorable borrowing conditions, the homeownership rate continued to decline, indicating that other factors, such as rapidly appreciating home values, may have outweighed the benefits of low interest rates for potential buyers.
As homeownership decreased, the percentage of renters in King of Prussia increased from 36% in 2015 to 47% in 2022. This shift towards renting coincided with a rise in average rent prices, which increased from $1,597 in 2015 to $1,658 in 2022, a more modest 3.8% increase compared to home prices. The population growth from 23,841 in 2015 to 28,595 in 2022 likely contributed to the increased demand for rental properties, supporting both higher renter percentages and rent prices.
In 2023 and 2024, the housing market in King of Prussia continued to evolve. The average home price reached $444,873 in 2023 and further increased to $464,535 in 2024, representing a 10.4% rise over two years. Simultaneously, federal interest rates climbed significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates, combined with elevated home prices, may further impact homeownership trends in the area.
Looking ahead, predictive models suggest that average home prices in King of Prussia are likely to continue their upward trajectory over the next five years, albeit potentially at a slower pace due to higher interest rates. Average rent prices are also expected to increase, driven by ongoing population growth and the shift towards renting. However, the rate of increase may moderate as the market adjusts to economic conditions and housing supply catches up with demand.
In summary, King of Prussia has experienced a notable shift from homeownership to renting, accompanied by substantial increases in both home prices and rent. The interplay between population growth, rising property values, and changing interest rates has reshaped the local housing market. As the community continues to evolve, these trends are likely to have lasting impacts on the residential landscape of zip code 19406.
