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Croydon: Rising Home Values and Ownership Rates Amid Rental Market Volatility
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
Croydon, Pennsylvania, is a suburban community located in Bucks County. Known for its proximity to Philadelphia and its mix of residential and industrial areas, Croydon has experienced notable shifts in its housing market over the past decade. The city has maintained a relatively high rate of homeownership, though this has fluctuated slightly. Average home prices have shown a significant upward trend, while average rent prices have also increased, albeit at a more moderate pace.
The homeownership rate in Croydon has remained relatively stable, with some minor fluctuations. In 2013, 74% of residents were homeowners. This percentage dipped slightly to 69% in 2019 before rising again to 75% in 2022. During this same period, average home prices in Croydon have shown a consistent upward trend. In 2013, the average home price was $154,579. By 2022, this figure had increased dramatically to $279,593, representing an impressive 80.9% growth over nine years. This trend suggests that despite rising home prices, Croydon has managed to maintain a high rate of homeownership.
Federal interest rates have played a significant role in shaping homeownership trends in Croydon. From 2013 to 2016, interest rates remained very low, hovering around 0.1% to 0.4%. During this period, homeownership rates in Croydon remained relatively stable at around 70-74%. As interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), we saw a slight dip in homeownership to 69% in 2019. However, when interest rates dropped sharply in 2020 and 2021 to near-zero levels, homeownership rebounded, reaching 75% by 2022 despite the continued rise in home prices.
Renter percentages in Croydon have inversely mirrored homeownership rates, ranging from a high of 31% in 2019 to a low of 25% in 2022. Average rent prices have shown an overall upward trend, albeit with some fluctuations. In 2013, the average rent was $1,023. This figure rose to $1,339 in 2018, an increase of 30.9% over five years. However, rent prices then experienced a slight decrease, settling at $1,238 in 2022. This represents a more modest overall increase of 21% from 2013 to 2022, significantly less than the growth in home prices over the same period.
In 2023 and 2024, Croydon's housing market continued its upward trajectory. The average home price reached $296,272 in 2023 and further increased to $315,610 in 2024, representing a 6% and 6.5% year-over-year growth respectively. Concurrently, federal interest rates rose significantly, reaching 5.02% in 2023 and 5.33% in 2024. Despite these high interest rates, which typically discourage home buying, Croydon's housing market has remained robust, suggesting strong underlying demand for housing in the area.
Looking ahead, we can expect the average home prices in Croydon to continue their upward trend, albeit potentially at a slower rate due to high interest rates. Projecting the current trend forward, we might see average home prices reach approximately $350,000 to $375,000 by 2029. Average rent prices, which have shown more modest growth, may continue to increase gradually, potentially reaching around $1,400 to $1,500 by 2029. However, these projections could be influenced by various factors including economic conditions, local development, and changes in federal interest rates.
In summary, Croydon has maintained a strong homeownership rate despite significant increases in average home prices. The interplay between federal interest rates, home prices, and homeownership rates highlights the complex dynamics of the local housing market. While both home prices and rent have increased over the past decade, home prices have grown at a much faster rate, potentially making homeownership more challenging for new buyers in the future. The resilience of the housing market in the face of rising interest rates suggests a strong local economy and continued demand for housing in Croydon.
