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Collegeville, PA: Rising Home Values and Shifting Ownership in a Historic Borough
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
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Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Collegeville, located in Pennsylvania, is a small community with a rich history and a population of 5,172 as of 2022. The city, spanning just 1.57 square miles, is home to Ursinus College, a private liberal arts institution. Over the past decade, Collegeville has experienced fluctuations in homeownership rates and significant increases in both average home prices and average rent prices.
The homeownership rate in Collegeville has shown a slight downward trend from 2013 to 2022. In 2013, 80% of residents were homeowners, but by 2022, this figure had decreased to 73%. Despite this decline in homeownership, average home prices have consistently risen. In 2013, the average home price was $297,782, and by 2022, it had increased dramatically to $494,805, representing a 66% increase over nine years.
Federal interest rates have played a role in homeownership trends. From 2013 to 2016, when interest rates were extremely low (ranging from 0.11% to 0.40%), homeownership rates remained relatively stable at around 77-79%. However, as interest rates began to rise more significantly from 2017 onwards, reaching 1.68% in 2022, homeownership rates declined to 73%. This trend suggests that higher interest rates may have made home purchases less affordable for some residents.
Renter percentages in Collegeville have inversely mirrored the homeownership trends, increasing from 20% in 2013 to 27% in 2022. Correspondingly, average rent prices have also risen, though not as dramatically as home prices. In 2013, the average rent was $1,203, and by 2022, it had increased to $1,558, a 29.5% rise. The growing renter population and increasing rent prices may be attributed to factors such as the presence of college students and young professionals who prefer renting, as well as those priced out of the homeownership market due to rising home prices.
In 2023 and 2024, Collegeville's housing market continued its upward trajectory. The average home price in 2023 reached $518,997, a further 4.9% increase from 2022. In 2024, the average home price climbed to $537,175, representing a 3.5% annual increase. Notably, federal interest rates also rose significantly during this period, reaching 5.02% in 2023 and 5.33% in 2024, which may impact future homeownership rates and housing affordability in the area.
Looking ahead, based on the consistent upward trend in both home prices and rent prices, it's projected that these figures will continue to rise over the next five years. Average home prices could potentially reach around $650,000 by 2029, while average rent prices might approach $1,900 per month. However, these projections assume a continuation of current trends and do not account for potential economic shifts or policy changes that could affect the housing market.
In summary, Collegeville has experienced a gradual shift towards a higher percentage of renters over the past decade, coupled with substantial increases in both average home prices and average rent prices. The interplay between federal interest rates, homeownership rates, and housing costs highlights the complex dynamics of the local real estate market. As the community continues to evolve, these trends will likely shape the demographic and economic landscape of Collegeville in the coming years.
