King of Prussia District Releases Report on the State of Rental and Owner-Occupied Multifamily Housing
King of Prussia, PA (June 16, 2020) – Today King of Prussia District released The State of Rental and Owner-Occupied Multifamily Housing in King of Prussia, along with key findings that illustrate a robust multifamily housing market in Upper Merion Township/King of Prussia (UMT/KOP) through Q1 2020, with strong demand for inventory added in the last five years. The report focuses primarily on the 18 multifamily rental and two (2) owner-occupied properties located within King of Prussia District’s boundaries, and uses data gathered from property manager interviews, CoStar, Montgomery County Planning Commission, Montgomery County Board of Assessment Appeals and development representatives.
During a nearly two (2) decade period when almost no new multifamily housing units were built in UMT/KOP, the township’s employment population swelled from around 43,000 to more than 60,000 people, leading to an increase in traffic and congestion. The housing drought came to an end when more than 3,000 multifamily housing units were built between 2016 and 2020. The surge in new housing raised concerns about the depth of market demand, the impact of school-aged children on the local school district, traffic and congestion and the ability to absorb additional housing developments that are already in the planning or approvals stage. In an effort to gain a better understanding of the impacts, King of Prussia District identified and surveyed the housing developments located within the boundary of the business improvement district in February and March of 2020.
Key findings of the report include:
- The demand for new and existing multifamily housing is strong: KOP led the Philadelphia region in lease-up rates through the end of 2019.
- The impact on the local school system is low: The study of 1,811 completed new multifamily units shows that only 27 new school-aged children were generated, a ratio of one (1) school-aged child per 67 new housing units.
- Amenity-rich, walkable neighborhoods are driving demand: The Village at Valley Forge and Moore Park KOP account for nearly all of the new housing development in the township. All show extremely strong lease-up rates, indicating that access to high-quality amenities and walkability in mixed-use neighborhoods are driving demand.
Surveys conducted for the report indicate that many of these new UMT/KOP units are being leased to people looking to reduce or eliminate their long commutes, alleviating some of the traffic and congestion caused by the surge in employment numbers.
While the report does not account for the unknown impacts of COVID-19, it concludes that demand remains high, and given the many benefits of new housing, UMT/KOP could absorb additional housing developments with few negative impacts.
“It’s no surprise that the multifamily market is strong in King of Prussia,” said Eric Goldstein, Executive Director of King of Prussia District. “Residents are drawn to KOP for many of the same reasons that companies are: A very strong employment base; access to incredible retail, dining, entertainment and recreation; and superb geographical access. This report illustrates that residential development helps to energize the community and contribute greatly to the local economy.”
KING OF PRUSSIA DISTRICT
King of Prussia District is a 501(c)(3) not-for-profit, special services organization. King of Prussia District engages public and private partners to collaboratively improve the economic environment in King of Prussia by making it more vibrant, attractive and prosperous. More information is available at visitKOP.com Facebook @KingofPrussiaDistrict | Twitter @KOPBID | Instagram @visitKOP