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Brentwood, Maryland: Housing Market Trends Reveal Substantial Home Value Growth Amid Shifting Ownership Rates
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Brentwood, a town in Maryland's Prince George's County, has experienced significant changes in its housing market over the past decade. This small community has seen notable fluctuations in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market dynamics. The homeownership rate in Brentwood showed a slight overall increase from 41% in 2013 to 46% in 2022. During this same period, average home prices in Brentwood saw a substantial increase. In 2013, the average home price was $182,392, and by 2022, it had risen to $404,301, representing a 121% increase over nine years. This trend suggests that while home values have appreciated significantly, it hasn't necessarily translated to a proportional increase in homeownership rates.
Federal interest rates have played a role in shaping homeownership trends in Brentwood. From 2013 to 2016, when interest rates were historically low (ranging from 0.11% to 0.40%), homeownership rates in Brentwood increased from 41% to 47%. This aligns with the general trend of lower interest rates encouraging homeownership due to more affordable financing options. However, as interest rates began to rise more sharply from 2017 onwards, homeownership rates in Brentwood stabilized around 45-47%, suggesting that rising home prices may have offset the benefits of previously low interest rates.
Rental trends in Brentwood have shown interesting patterns. The percentage of renters decreased slightly from 59% in 2013 to 54% in 2022. Concurrently, average rent prices increased steadily. In 2013, the average rent was $1,241, and by 2022, it had risen to $1,681, an increase of 35.5% over nine years. This increase in rent prices, while significant, was not as dramatic as the rise in home prices during the same period. The town's population growth from 3,220 in 2013 to 3,729 in 2022 may have contributed to the sustained demand for rental properties, despite rising rents.
Looking at the most recent data, average home prices in Brentwood saw a slight decrease from $404,301 in 2022 to $401,360 in 2023, followed by a marginal increase to $402,076 in 2024. This stabilization in home prices coincides with a significant rise in federal interest rates, which jumped from 1.68% in 2022 to 5.02% in 2023 and further to 5.33% in 2024. These higher interest rates may be contributing to a cooling effect on home price growth.
Based on these trends, we can forecast potential scenarios for the next five years. If current patterns persist, average home prices in Brentwood may continue to stabilize or experience modest growth, potentially reaching around $425,000 to $450,000 by 2029. Average rent prices could continue their upward trajectory, potentially reaching $1,900 to $2,100 by 2029, assuming consistent demand and economic conditions.
In summary, Brentwood's housing market has demonstrated resilience and growth over the past decade. The significant appreciation in home values, coupled with more moderate increases in rent prices, suggests a dynamic market responsive to broader economic factors. The recent stabilization of home prices in conjunction with rising interest rates indicates a potential shift in market dynamics that will be crucial to monitor in the coming years.
