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Average Home Values and Ownership in Zip Code 20882: A Decade of Growth and Stability
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 20882, located in Damascus, Maryland, is characterized by high homeownership rates and a robust housing market. This suburban area has witnessed significant changes in property values and homeownership patterns over the past decade, reflecting broader economic trends and local market dynamics.
The homeownership rate in zip code 20882 has maintained a consistently high level, reaching 97% in 2022. This represents a slight increase from 93% in 2018, indicating a growing preference for homeownership in the area. Simultaneously, average home prices have shown a substantial upward trend. In 2010, the average home price was $532,605, and by 2022, it had risen to $748,337, marking a 40.5% increase over 12 years.
The correlation between federal interest rates and homeownership rates in this zip code appears to align with the general economic principle that lower interest rates encourage homeownership. For instance, when interest rates were at historic lows between 2020 and 2021 (0.38% and 0.08% respectively), the homeownership rate in the area reached its peak of 97%. This relationship suggests that favorable financing conditions have contributed to the high rate of homeownership in the area.
The percentage of renters in zip code 20882 has remained relatively low, fluctuating between 3% and 7% from 2013 to 2022. However, average rent prices have shown considerable volatility. In 2013, the average rent was $1,835, which peaked at $2,383 in 2015 before declining to $2,071 in 2022. This fluctuation in rent prices, despite the low percentage of renters, could be attributed to changes in the local economy and housing demand.
In 2023 and 2024, the housing market in zip code 20882 continued its upward trajectory. The average home price reached $750,393 in 2023 and further increased to $771,857 in 2024, representing a 2.9% year-over-year growth. This growth occurred despite a significant rise in federal interest rates, which stood at 5.02% in 2023 and 5.33% in 2024, potentially indicating strong local demand and economic resilience in the area.
Predictive models suggest that the robust housing market in zip code 20882 is likely to continue its upward trend over the next five years. Average home prices are projected to increase by approximately 3-4% annually, potentially reaching around $900,000 by 2029. Average rent prices, while more volatile, are expected to stabilize and show modest growth, possibly reaching $2,300-$2,500 per month in the same timeframe.
In summary, zip code 20882 demonstrates a strong preference for homeownership, with consistently high rates above 90%. The area has experienced significant appreciation in average home values, rising from $532,605 in 2010 to $771,857 in 2024, a 45% increase over 14 years. Despite fluctuations in average rent prices and rising interest rates, the housing market in this zip code has shown resilience and continued growth, suggesting a positive outlook for property values in the coming years.
