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Swarthmore's Rising Home Values and Shifting Ownership Trends: A College Town's Housing Evolution
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
Swarthmore, located in Pennsylvania, is a small community known for its prestigious liberal arts college, Swarthmore College. This charming town has experienced interesting shifts in homeownership rates, average home prices, and average rent prices over the past decade. The overall trend shows a slight increase in homeownership, accompanied by significant growth in average home prices and fluctuating average rent prices.
Homeownership in Swarthmore has shown a gradual upward trend from 2013 to 2022. In 2013, the homeownership rate was 73%, which increased to 78% by 2022. This 5 percentage point increase indicates a growing preference for homeownership in the area. Concurrently, average home prices have experienced substantial growth. In 2013, the average home price was $237,987, which rose steadily to $375,343 by 2022, representing a 57.7% increase over this period. The most significant jump occurred between 2020 and 2021, with average home prices rising from $303,851 to $344,440, a 13.4% increase in just one year.
The relationship between federal interest rates and homeownership rates in Swarthmore appears to follow the general trend of lower interest rates encouraging homeownership. For instance, from 2013 to 2016, when interest rates were historically low (ranging from 0.11% to 0.40%), homeownership rates increased from 73% to 75%. However, even as interest rates began to rise more significantly from 2017 onwards, homeownership rates in Swarthmore continued to increase, reaching 78% by 2022. This suggests that other factors, such as the desirability of the area or local economic conditions, may have played a role in sustaining the upward trend in homeownership.
The renter percentage in Swarthmore has inversely mirrored the homeownership trend, decreasing from 27% in 2013 to 22% in 2022. Average rent prices, however, have shown more volatility. In 2013, the average rent was $1,219, which increased sharply to $1,475 in 2014. Rent prices continued to fluctuate, reaching a peak of $1,559 in 2016 before decreasing to $1,447 in 2017. By 2022, the average rent had risen again to $1,524. This volatility in rent prices, coupled with the decreasing renter percentage, suggests that as home prices increased, some renters may have transitioned to homeownership, potentially due to the long-term financial benefits of owning in an appreciating market.
In 2023 and 2024, Swarthmore has continued to see growth in average home prices. The average home price in 2023 was $404,093, a 7.7% increase from 2022. In 2024, the average home price further increased to $427,113, representing a 5.7% rise from the previous year. These figures indicate a continuing upward trend in the local housing market. Concurrently, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024, which may impact future homebuying activity.
Looking ahead, based on the historical data and current trends, we can project that average home prices in Swarthmore are likely to continue their upward trajectory over the next five years, albeit potentially at a more moderate pace due to higher interest rates. Average rent prices may also see an upward trend, driven by increased housing costs and potential shifts in the rental market as homeownership becomes more challenging for some due to higher mortgage rates.
In summary, Swarthmore has demonstrated a trend of increasing homeownership rates and rising average home prices over the past decade. The community has shown resilience in maintaining these trends even in the face of rising interest rates. The rental market has experienced more volatility, with fluctuating average rent prices and a decreasing percentage of renters. As we move forward, the interplay between interest rates, housing affordability, and local economic factors will likely continue to shape the housing market dynamics in this desirable Pennsylvania community.
