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Average Home Values and Ownership in Zip Code 21216: A Decade of Significant Market Shifts
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 21216 in Baltimore, Maryland, has undergone significant changes in its housing landscape over the past decade. This area has experienced a notable shift from predominantly owner-occupied housing to a more balanced mix of owners and renters, accompanied by substantial increases in average home values and fluctuations in rent prices. The homeownership rate in zip code 21216 has shown a marked decline from 2013 to 2022. In 2013, 57% of housing units were owner-occupied, but by 2022, this figure had decreased to 49%. This downward trend in homeownership coincided with a dramatic increase in average home prices. The average home price in 2013 was $46,257, which more than doubled to $118,536 by 2022, representing a 156% increase over this period.
Federal interest rates have played a significant role in shaping homeownership trends in this area. From 2013 to 2016, when interest rates were at historic lows (ranging from 0.11% to 0.40%), the homeownership rate still declined from 57% to 47%. This suggests that other factors, such as rising home prices, may have outweighed the potential benefits of low interest rates for potential homebuyers in this zip code.
The renter population in zip code 21216 has grown correspondingly with the decline in homeownership. In 2013, 43% of housing units were renter-occupied, increasing to 51% by 2022. Average rent prices have shown some volatility but overall remained relatively stable during this period. The average rent was $1,074 in 2013, peaked at $1,114 in 2014, and then settled at $1,027 in 2022. This stability in rent prices, coupled with rising home values, may have contributed to the shift towards renting in this area.
Looking at the most recent data, the average home price in zip code 21216 slightly decreased from $118,536 in 2022 to $115,330 in 2023, and then marginally increased to $115,827 in 2024. This recent stabilization occurs alongside a significant rise in federal interest rates, which jumped from 1.68% in 2022 to 5.02% in 2023, and further to 5.33% in 2024. These higher interest rates may impact future homebuying activity in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 21216 will continue to rise, albeit at a more moderate pace than seen in the early 2020s. The recent stabilization suggests a potential cooling of the market, but ongoing demand and limited housing supply may still drive prices upward. Average rent prices are expected to increase gradually, reflecting inflation and the area's steady demand for rental properties.
In summary, zip code 21216 has undergone a significant transformation in its housing landscape over the past decade. The shift from a majority owner-occupied area to a more balanced rental market, coupled with substantial increases in home values, reflects broader urban trends of gentrification and changing housing preferences. The interplay between federal interest rates, local economic conditions, and housing affordability will continue to shape the future of this Baltimore neighborhood.
