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Collingdale: Rising Home Values and Shifting Ownership Trends in Pennsylvania's Urban Landscape
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Collingdale, located in Pennsylvania, is a small yet densely populated community with a rich history dating back to the late 19th century. Over the past decade, this borough has experienced significant shifts in its housing landscape, characterized by a gradual decline in homeownership and a corresponding rise in average home prices and rent costs.
The homeownership rate in Collingdale has shown a consistent downward trend from 2013 to 2022. In 2013, 71% of residents owned their homes, but by 2022, this figure had dropped to 58%. Conversely, the percentage of renters increased from 29% to 42% during the same period. This shift coincided with a substantial rise in average home prices, which grew from $85,406 in 2013 to $175,519 in 2022, representing a remarkable 105.5% increase over nine years.
The relationship between federal interest rates and homeownership rates in Collingdale reflects broader economic trends. As interest rates remained low between 2013 and 2021, ranging from 0.08% to 1.83%, one might have expected homeownership to increase. However, the opposite occurred, suggesting that other factors, such as rising home prices, may have outweighed the potential benefits of low interest rates for potential homebuyers in this area.
The rental market in Collingdale has also seen significant changes. As the percentage of renters increased from 29% in 2013 to 42% in 2022, average rent prices fluctuated but generally trended upward. In 2013, the average rent was $1,134, and by 2022, it had risen to $1,170, an increase of 3.2%. The most notable jump occurred between 2020 and 2021, when average rent increased from $1,178 to $1,271, a 7.9% rise in a single year.
In 2023 and 2024, the housing market in Collingdale continued its upward trajectory. The average home price reached $183,827 in 2023 and further increased to $194,200 in 2024, representing a 10.6% rise over two years. This growth occurred despite a significant increase in federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024, potentially impacting affordability for prospective homebuyers.
Looking ahead, predictive models suggest that the trends observed in Collingdale are likely to continue over the next five years. Average home prices are projected to maintain their upward trajectory, potentially reaching or exceeding $225,000 by 2029. Rent prices are also expected to increase, albeit at a more moderate pace, potentially surpassing $1,400 per month within the same timeframe.
In summary, Collingdale has experienced a significant shift in its housing market over the past decade, characterized by declining homeownership rates, rising home prices, and increasing rent costs. These trends, influenced by various economic factors including interest rates and local market dynamics, are expected to persist in the coming years, shaping the future of this Pennsylvania community's residential landscape.
