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Zip Code 19046: Rising Home Values and Shifting Ownership in Jenkintown's Historic 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
Zip code 19046, located in Jenkintown, Pennsylvania, has experienced notable shifts in homeownership rates and housing market dynamics over the past decade. This area has seen a gradual transition from predominantly owner-occupied housing to a more balanced mix of owners and renters, alongside significant increases in both average home prices and average rent prices. The homeownership rate in zip code 19046 has shown a steady decline from 71% in 2013 to 67% in 2022. This trend coincides with a substantial increase in average home prices, which rose from $284,355 in 2013 to $445,364 in 2022, representing a 56.6% increase over nine years. The inverse relationship between homeownership rates and average home prices suggests that rising property values may have made homeownership less attainable for some residents.
Federal interest rates have played a significant role in shaping homeownership trends in the area. From 2013 to 2016, when interest rates were historically low (ranging from 0.11% to 0.4%), the homeownership rate remained stable at 71%. However, as interest rates began to rise from 2017 (1%) to 2019 (2.16%), homeownership rates started to decline, dropping to 69% by 2019. This trend aligns with the general principle that lower interest rates tend to encourage homeownership by making mortgages more affordable.
As homeownership rates declined, the percentage of renters in zip code 19046 increased from 29% in 2013 to 33% in 2022. This shift coincided with a rise in average rent prices, which increased from $1,135 in 2013 to $1,307 in 2022, a 15.2% increase over the same period. The population of the area remained relatively stable during this time, fluctuating between 18,946 and 20,643 residents, suggesting that the increase in renters and rent prices was not primarily driven by population growth but rather by changing housing preferences or affordability constraints.
In 2023 and 2024, the housing market in zip code 19046 continued to evolve. The average home price reached $471,946 in 2023 and further increased to $491,597 in 2024, representing a significant 10.4% rise over two years. This upward trend occurred despite a sharp increase in federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024. These higher interest rates would typically be expected to cool the housing market, but the continued price appreciation suggests strong demand in the area.
Looking ahead, predictive models suggest that the upward trend in both average home prices and average rent prices is likely to continue over the next five years. Average home prices are projected to surpass $550,000 by 2029, while average rent prices could approach $1,500 per month. However, these increases may be moderated by factors such as interest rate fluctuations, economic conditions, and local housing policies.
In summary, zip code 19046 has experienced a gradual shift towards a more balanced mix of homeowners and renters over the past decade, driven by rising property values and changing economic conditions. The area has seen substantial appreciation in both home prices and rent prices, with this trend expected to continue in the coming years. The interplay between federal interest rates, housing affordability, and local market dynamics will continue to shape the housing landscape in this Pennsylvania community.
