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Rising Home Values and Strong Ownership in Edgewood, Maryland: A Decade of Resilient Housing Market
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
Edgewood, located in Maryland, is a vibrant community with a population of 28,404 as of 2022. This suburban area has experienced notable shifts in homeownership rates and housing prices over the past decade, reflecting broader economic trends and local market dynamics.
The homeownership rate in Edgewood has shown a general upward trend, increasing from 68% in 2013 to 75% in 2022. This rise in homeownership coincides with fluctuations in average home prices. In 2013, the average home price was $140,333, which steadily increased to $238,173 by 2022, representing a significant 69.7% growth over nine years. The most substantial year-over-year increase occurred between 2020 and 2021, with average home prices jumping from $191,771 to $218,052, a 13.7% rise in a single year.
Federal interest rates have played a crucial role in shaping homeownership trends in Edgewood. The period of historically low interest rates from 2013 to 2021, ranging from 0.08% to 0.14%, likely contributed to the increase in homeownership. As interest rates remained low, financing became more accessible, encouraging more residents to purchase homes. This is evident in the steady rise of homeownership from 68% in 2013 to 73% in 2021.
Renter percentages in Edgewood have inversely mirrored the homeownership trends, decreasing from 32% in 2013 to 25% in 2022. Despite this decline in the renter population, average rent prices have shown an overall upward trajectory. In 2013, the average rent was $1,350, which increased to $1,339 by 2022. However, this trend was not consistent throughout the period. There were fluctuations, with the average rent reaching a peak of $1,462 in 2021 before dropping slightly in 2022. The population growth from 27,894 in 2013 to 28,404 in 2022 may have contributed to the overall increase in rental prices despite the declining percentage of renters.
In 2023 and 2024, Edgewood has continued to see growth in average home prices. The average home price reached $248,595 in 2023 and further increased to $253,762 in 2024. This represents a 4.4% increase from 2022 to 2023 and a 2.1% increase from 2023 to 2024. Notably, federal interest rates have also risen significantly during this period, reaching 5.02% in 2023 and 5.33% in 2024, which may impact future homeownership trends.
Looking ahead, based on the historical data and current trends, we can project that average home prices in Edgewood will continue to rise over the next five years, albeit at a potentially slower rate due to higher interest rates. Average home prices could reach approximately $275,000 to $285,000 by 2029. Average rent prices are also expected to increase, potentially reaching around $1,500 to $1,600 per month by 2029, assuming continued population growth and economic stability in the area.
In summary, Edgewood has experienced a significant increase in homeownership rates and average home prices over the past decade, influenced by favorable interest rates and local market conditions. While the renter population has decreased proportionally, average rent prices have generally trended upward. The recent rise in interest rates and continued growth in home prices suggest a dynamic housing market in Edgewood, with potential for further price appreciation in both the home ownership and rental markets in the coming years.
