NORRISTOWN, PA – The latest report on housing prices in Montgomery County indicates a continued strong demand for housing in the county, despite ongoing disruptions of the COVID-19 pandemic. The report, released by the Montgomery County Planning Commission (MCPC), indicates an overall median sales price of $370,000, which reflects an increase of 10.4 percent from 2020 to 2021. The number of market-rate sales increased in 2021 with over 12,800 sales transacted—1,000 more sales than the previous year and the highest amount in over a decade. All housing types saw increases in median sales price.
The report looks at housing in terms of existing and new units. The best gauge of actual home values is to isolate the sales data for existing units since new units tend to be priced higher–and the level of new construction can influence the annual medians beyond market-rate prices. In 2021, the median sales price for existing units increased by 9.9 percent from the previous year to $355,000. The growth in median sales price for the different types of existing homes ranged from 9.6 percent for single-family attached units to 13.1 percent for multifamily units. This indicates a solid market for the county’s existing housing stock.
The median sales price of all new units completed and sold in 2021 was $529,116, an increase of nearly 16.2 percent from the prior year and one of the largest jumps in new home prices in the county in recent memory. New single-family detached homes increased the most by 21.4 percent to a median sales price of $615,538, while new single-family attached homes increased by 15.5 percent to $463,610.
While this report demonstrates Montgomery County’s unique economic position in the region as a significant and diverse job center and a desirable community to live and work, the issue of attainable housing for low- and middle-income homebuyers is more important than ever.
Many homebuyers struggle to find homes in the county due, in part, to an imbalanced housing market. This crucial issue, addressed in Montco’s Homes for All initiative, requires intensive focus, advocacy, meaningful partnerships with various stakeholders, and effective collaboration to develop realistic approaches and solutions to increasing homeownership opportunities for all county residents.
The report, which also highlights emerging trends in the county and provides data for each municipality, is available under “Reports” at www.montcopa.org/MCPCPublications and in MCPC’s online data portal at www.montcopa.org/PlanningDataPortal. Check out the data portal for other informative reports.
For additional information, contact Daniel Farina, AICP at (610) 278-3728 or dfarina@montcopa.org.
