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Average Home Values and Ownership in Baltimore's Zip Code 21224: A Decade of Resilience
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
Zip code 21224 in Baltimore, Maryland, has experienced significant changes in its housing market over the past decade. This area, known for its proximity to the Inner Harbor and vibrant neighborhoods like Canton, has seen fluctuations in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market dynamics.
From 2013 to 2022, the homeownership rate in zip code 21224 showed a gradual increase, rising from 58% to 61%. During this same period, average home prices exhibited a notable upward trend. In 2013, the average home price was $153,061, which increased to $222,359 by 2022, representing a substantial 45% growth over nine years. This correlation suggests that rising property values may have encouraged more residents to invest in homeownership.
The relationship between federal interest rates and homeownership rates in this zip code follows a generally expected pattern. For instance, from 2013 to 2016, when interest rates remained extremely low (ranging from 0.11% to 0.40%), the homeownership rate held steady at 58%. As interest rates began to rise more significantly from 2017 onwards, reaching 1.68% in 2022, we observed a slight increase in homeownership to 61%. This trend might indicate that some residents were motivated to purchase homes before potential further rate increases.
Renter percentages in zip code 21224 showed a slight decrease from 42% in 2013 to 39% in 2022, inversely mirroring the increase in homeownership. Interestingly, despite this decrease in the proportion of renters, average rent prices rose consistently. The average rent increased from $1,426 in 2013 to $1,624 in 2022, a 14% increase over the period. This upward trend in rent prices, despite a declining percentage of renters, could be attributed to factors such as improved housing quality or increased demand for rental properties in specific neighborhoods within the zip code.
In 2023 and 2024, the housing market in zip code 21224 continued to evolve. The average home price reached $227,361 in 2023 and further increased to $236,623 in 2024, showing a steady upward trajectory. This growth occurred despite the significant rise in federal interest rates, which stood at 5.02% in 2023 and 5.33% in 2024. These higher interest rates typically make mortgages more expensive, yet the continued rise in home prices suggests strong demand in this area of Baltimore.
Looking ahead, based on historical trends and current market conditions, we can project potential scenarios for the next five years. Average home prices in zip code 21224 are likely to continue their upward trajectory, albeit potentially at a more moderate pace due to higher interest rates. We might expect average home prices to reach around $260,000 to $275,000 by 2029. Average rent prices are also expected to increase, potentially reaching $1,800 to $1,900 per month by 2029, assuming the current growth rate continues.
In summary, zip code 21224 has demonstrated a resilient and growing housing market over the past decade. The area has seen a gradual increase in homeownership rates, significant growth in average home prices, and steady increases in average rent prices. These trends, coupled with the area's ability to maintain price growth even in the face of rising interest rates, suggest a strong and desirable housing market in this part of Baltimore.
