73% of the units constructed in 2017 were attached or multifamily housing types.

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1 Montgomery County Data: HOUSING 2017 Housing Units Built Montgomery County, Pennsylvania 73% of the units constructed in 2017 were attached or multifamily housing types. Housing construction in Montgomery County represented the second highest amount constructed over the last ten years. Almost 2,000 new units were added to the county s housing stock over the last year. Multifamily units comprised the largest housing type segment once again, and single-family attached units grew since last year, while single-family detached units declined. The densest housing types, attached and multifamily, Canvas - Village at Valley Forge accounted for 73% of all units built in the county in 2017, the second highest percentage in the county s history. New single-family attached and multifamily residential construction is good for the county. It provides more housing choices and increases opportunities to redevelop areas that may be in need of a reinvention. It also brings economic growth through more jobs, consumer spending, and tax revenue. All new residential construction in 2017 represents approximately $318 million of assessed value which is taxable. New Housing Units Built, Single-Family Detached Single-Family Attached Multifamily Mobile Homes Total Units , , , , , , ,964 Percent Change % 4% -24% 43% -13% All data comes from the Montgomery County Board of Assessment Appeals (BOA). The BOA does not indicate that a unit has been built until that unit has been fitted out and sold or put on the market for rent. Therefore, a unit may have been constructed, but it may not appear in our data until the subsequent year. All data for previous years presented in this report has been updated to reflect actual totals. 1

2 Market Trends The most defining trend of the current housing cycle is the rise in multifamily housing construction. While not a new trend, multifamily has dominated the number of units completed over the last four years. The number of multifamily units built in the years since the Great Recession is a much higher percentage of total units compared to earlier years. In the 1990 s and early 2000 s, there were spikes in the amount of multifamily units produced, but the number of new singlefamily detached units was on average three times higher than in recent years. New Housing Units Built, The current market places high value on mixed-uses, shopping, transit connectivity, and neighborhood character. Single-family detached units are not being built in the numbers they once were due to several factors. First, the majority of housing produced for previous generations in Montgomery County was single-family detached, and readily available land is now harder to find for this housing type. Also, the cost of new construction prices out many young families looking for starter homes. While the average lot size for a new New Townhomes Lower Merion detached unit is smaller than in previous decades, the actual square footage of the home has gotten larger and developers pack in luxuries to provide greater profitability from smaller tract areas. Finally, municipalities are allowing for more multifamily and mixed-use housing types as a result of market demand, especially in mature suburbs in and around employment centers. The change in housing types is having an effect on the overall marketplace. Almost all multifamily housing since the Recession has been built for the rental market as opposed to owner-occupied condos. As a result, homeownership rates countywide have fallen from 73.1% to 71.2% in only six years since Combined with the lesser amount of single-family detached housing built over the last five years, the result is a seller s market where a scarcity of units and greater competition limits some potential buyers due to rising housing prices. Statistics from the Berkshire Hathaway HomeServices Fox & Roach HomExpert Market Report confirm that the number of days a home sits on the market in Montgomery County has decreased almost 15 days since 2016, and the active monthly inventory of listings has decreased 14.5% in the same time period. 2

3 2017 Housing Units Built by Municipality, All Types 29 Hanover Douglass East Greenville Pennsburg 663 Red Hill New Hanover Marlborough Green Lane Frederick 73 Salford Salford Lower Frederick Schwenksville Telford Souderton Franconia 476 Lower Salford Skippack Hatfield Twp. Hatfield Bor. Towamencin Lansdale North Wales Gwynedd Worcester Montgomery Lower Gwynedd Whitpain Horsham Ambler 73 Dublin 276 Hatboro Springfield Moreland 611 Jenkintown Lower Moreland Bryn Athyn Abington Rockledge Cheltenham 100 Perkiomen East Norriton Plymouth Whitemarsh Philadelphia West Pottsgrove Pottsgrove Pottstown Lower Pottsgrove 422 Schuylkill River Limerick Royersford Trappe Collegeville Providence 29 Lower Providence West Norriton Norristown Merion Bridgeport 76 Conshohocken West Conshohocken Lower Merion Narberth Most Housing Units Built in 2017, All Types 1. Merion Lower Merion Providence Whitemarsh Hanover Hatfield Township New Hanover Montgomery Skippack Trappe Geography of New Units The map and table above show where new housing units were built within the county in Merion and Lower Merion saw the most units constructed. There are numerous centers of employment, entertainment, and retail within this area that have attracted new residents seeking diverse housing options. These municipalities have built significant amounts of new multifamily housing to meet market demand in areas like the Village at Valley Forge and Bala Cynwyd. Other areas of higher construction include Providence as well as both and New Hanover. Throughout the county, most municipalities saw less than 50 new units of housing built, but only a few, such as Bryn Athyn and Norristown, saw no new units. 3

4 Age-Restricted Units Built in 2017 Age-Restricted Units Built in 2017, by Housing Type Housing Type Units Percent of Type Single-Family Detached (SFD) % Single-Family Attached (SFA) % Multifamily (MF) % Mobile Home (MH) % Total % Median Lot and Unit Size for Single-Family Detached Homes Year Median Lot Size (Square Feet) Median Living Area (Square Feet) ,026 3, ,333 3, ,342 2, ,997 2, ,024 2, ,204 2, ,164 2, ,000 2, ,000 3, ,697 3, ,309 3,082 4

5 Municipality Municipal Totals, Census Current Overall Total Current Year Housing Units SFD SFA MF MH Total Units % Change SFD SFA MF MH Total Abington 22, , % Ambler 2, , % Bridgeport 2, , % Bryn Athyn % Cheltenham 15, , % Collegeville 1, , % Conshohocken 4, , % Douglass 3, , % East Greenville 1, , % East Norriton 6, , % Franconia 4, , % Green Lane % Hatboro 3, , % Hatfield Borough 1, , % Hatfield Township 7, , % Horsham 10, , % Jenkintown 2, , % Lansdale 7, , % Limerick 7, , % Lower Frederick 1, , % Lower Gwynedd 4, , % Lower Merion 24, , % Lower Moreland 4, , % Lower Pottsgrove 4, , % Lower Providence 9, , % Lower Salford 5, , % Marlborough 1, , % Montgomery 9, , % Narberth 1, , % New Hanover 3, , % Norristown 13, , % North Wales 1, , % Pennsburg 1, , % Perkiomen 3, , % Plymouth 7, , % Pottstown 10, , % Red Hill 1, , % Rockledge 1, , % Royersford 2, , % Salford , % Schwenksville % Skippack 3, , % Souderton 2, , % Springfield 7, , % Telford 1, , % Towamencin 7, , % Trappe 1, , % Dublin 9, , % Frederick 1, , % Gwynedd 6, , % Hanover 2, , % Merion 12, ,007 13, % Moreland 10, , % Pottsgrove 1, , % Providence 7, , % Salford 1, , % West Conshohocken % West Norriton 7, , % West Pottsgrove 1, , % Whitemarsh 7, , % Whitpain 7, , % Worcester 3, , % Totals 325,735 4,005 3,973 5, , , % ,964 5

6 Municipality SFD SFA MF MH Total SFD SFA MF MH Total SFD SFA MF MH Total Abington Ambler Bridgeport Bryn Athyn Cheltenham Collegeville Conshohocken Douglass East Greenville East Norriton Franconia Green Lane Hatboro Hatfield Borough Hatfield Township Horsham Jenkintown Lansdale Limerick Lower Frederick Lower Gwynedd Lower Merion Lower Moreland Lower Pottsgrove Lower Providence Lower Salford Marlborough Montgomery Narberth New Hanover Norristown North Wales Pennsburg Perkiomen Plymouth Pottstown Red Hill Rockledge Royersford Salford Schwenksville Skippack Souderton Springfield Telford Towamencin Trappe Dublin Frederick Gwynedd Hanover Merion Moreland Pottsgrove Providence Salford West Conshohocken West Norriton West Pottsgrove Whitemarsh Whitpain Worcester Total , , ,016 6

7 Municipality SFD SFA MF MH Total SFD SFA MF MH Total Abington Ambler Bridgeport Bryn Athyn Cheltenham Collegeville Conshohocken Douglass East Greenville East Norriton Franconia Green Lane Hatboro Hatfield Borough Hatfield Township Horsham Jenkintown Lansdale Limerick Lower Frederick Lower Gwynedd Lower Merion Lower Moreland Lower Pottsgrove Lower Providence Lower Salford Marlborough Montgomery Narberth New Hanover Norristown North Wales Pennsburg Perkiomen Plymouth Pottstown Red Hill Rockledge Royersford Salford Schwenksville Skippack Souderton Springfield Telford Towamencin Trappe Dublin Frederick Gwynedd Hanover Merion Moreland Pottsgrove Providence Salford West Conshohocken West Norriton West Pottsgrove Whitemarsh Whitpain Worcester Total , ,634 7

8 Municipality SFD SFA MF MH Total SFD SFA MF MH Total Abington Ambler Bridgeport Bryn Athyn Cheltenham Collegeville Conshohocken Douglass East Greenville East Norriton Franconia Green Lane Hatboro Hatfield Borough Hatfield Township Horsham Jenkintown Lansdale Limerick Lower Frederick Lower Gwynedd Lower Merion Lower Moreland Lower Pottsgrove Lower Providence Lower Salford Marlborough Montgomery Narberth New Hanover Norristown North Wales Pennsburg Perkiomen Plymouth Pottstown Red Hill Rockledge Royersford Salford Schwenksville Skippack Souderton Springfield Telford Towamencin Trappe Dublin Frederick Gwynedd Hanover Merion Moreland Pottsgrove Providence Salford West Conshohocken West Norriton West Pottsgrove Whitemarsh Whitpain Worcester Total , , ,265 8

9 Consistency of 2017 Housing Unit Locations with County Comprehensive Plan The Planning Commission tracks where the construction of new housing is located in relation to the county s Development Potential map, which is part of our adopted county comprehensive plan. The map classifies all land within the county according to one of three broad categories, Growth Areas, Rural Resource Areas, and Open Space Preservation Areas. Each has its own list of recommended land use policies. One of the goals of the plan is to guide new development, at sufficient densities, into the Growth Areas, which include both developed land and undeveloped land, usually adjacent to existing development and able to be served by public infrastructure, including sewers, water, and road improvements. The plan also recommends that development should be minimized in areas identified as Rural Resource Areas, which should retain a rural character. When development does occur in these areas it should be at lower densities, utilize land preservation guidelines and be aimed at preserving open space and natural resources. The majority of homes built in 2017 were constructed in Growth Areas. Only 3% of the units were built in Undeveloped Rural Resource Areas and 1% in Conservation Opportunity Areas. The county comprehensive plan recommends no more than 5% of new units be built in Rural Resource Areas and no units be built in Conservation Opportunity Areas. Housing Units Built by Growth and Preservation Plan Category Category Single-Family Detached Single-Family Attached Multifamily Total Percent of Total Designated Growth Area Developed Land % Development Potential % Rural Resource Area Developed % Rural Resource Area Undeveloped % Existing Preserved Open Space % Conservation Opportunity Areas % Note: Mobile homes were not included in this analysis New single-family detached units in Growth Areas are recommended at densities that exceed one unit per acre. The median lot size for single family detached homes in these areas was well above this density, with only 86 of the new units (16%) constructed on larger lots. The chart below shows the median lot sizes and living areas for single-family detached units in each of the Development Potential categories. Single-Family Detached Housing by Growth and Preservation Plan Category Median Lot Size (Square Feet) Median Living Area (Square Feet) Designated Growth Area Developed Land 13,315 2,873 Development Potential 12,466 3,121 Rural Resource Area Developed 101,973 2,924 Rural Resource Area Undeveloped 41,048 3,480 Existing Preserved Open Space N/A N/A Conservation Opportunity Area 49,298 3,298 9

10 Glossary Average The arithmetic mean of a series of numbers. Equals the sum of all numbers divided by the count of numbers in a series. Median The median is the exact middle of a distribution of numbers. Fifty percent of the sample has higher values and fifty percent lower. Age-Restricted Units Typically refers to housing developments where all residents are 55 years of age or older or developments where at least one person (per household) who is age 55 or older lives in at least 80% of the development s occupied units. Single-Family Detached (SFD) Single-Family Detached homes are stand-alone dwelling units not attached to any other dwelling unit. Single-Family Attached (SFA) Single-Family Attached homes include rowhomes, 3-4 unit homes, twins and townhouses, provided these units are attached to other units and are separated by one or more walls extending from ground to roof. Multifamily (MF) Multifamily developments include many rental apartments and condominiums. They are usually comprised of buildings having two or more units with entrances that share a common hallway. Mobile Homes (MH) Mobile Homes are produced in a factory and shipped to a site. Newer models are typically designed for permanent occupancy and are attached to a permanent foundation or other anchoring. Mobile Homes are not subject to local building codes but instead are subject to a less stringent federal code under the Department of Housing and Urban Development. Modular homes, though factory produced, conform to local building codes and are not included in this category. 10