Early in October, the Philadelphia Business Journal published, “The 30 Philadelphia-area ZIP codes delivering the best return on investment.” The list featured mostly neighborhoods in the City of Philadelphia that have had remarkable price increases over the past ten years following decades of relatively low values compared to other major US cities and the surrounding Philadelphia area suburbs. There are a few suburban locations on the list including Bridgeport (#30) and King of Prussia (#26), both, within Upper Merion Township, PA.
In the article, King of Prussia was reported to have a current Median Home Value of $331,800 (up $60,500 from a decade ago). This valuation equates to a 10-year percentage increase of 22% and a 10-year Return on Investment (R.O.I.) of 123%.
I was particularly happy to see both King of Prussia and Bridgeport on this list because back in 2010 when King of Prussia District was founded, we operated with an ‘unwritten mission’ of increasing property values. We believed then, as we do now, that our work with marketing and communications, physical and transportation improvements, land use and zoning issues and tax policy, will result in a more dynamic and desirable community and that ALL property owners and government entities will ultimately benefit from elevated property values.
- Upper Merion Township, Montgomery County, the Upper Merion Area School District and Montgomery County College benefit from a dramatically increased tax base that enables them to deliver quality services to their constituents.
- Commercial and industrial property owners benefit from improved equity positions and the valuations necessary to make investments in their properties (which we have seen a lot of) or sell.
- Residential property owners benefit from increased property values that enable them to capture equity in their homes for improvements or sell for significant gains.
The increase in property values enabled Upper Merion Township to go nine (9) years without a real estate tax increase. Tax contributions to the County and School District have increased substantially. The rising values also played a significant role in additional funding for the Township and School District through their equal share of the Real Estate Transfer Tax. Residents of the Township are not only seeing some of the best returns on investment in the region, the continued rise in commercial values have allowed residents to enjoy substantially improved recreational, educational, retail, dining and entertainment amenities as well as the lowest real estate taxes in Montgomery County. We must continue our work to elevate property values across the Township. It’s a win-win for everyone!