Loading Content...
Average Home Values and Ownership in Zip Code 21613: Cambridge's Resilient Housing Market
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Zip code 21613, located in Cambridge, Maryland, presents an interesting case study of housing trends over the past decade. This area, covering 225.89 square miles, has experienced fluctuations in population and housing dynamics, with notable shifts in homeownership rates and property values.
The ownership percentage in zip code 21613 has shown a slight upward trend over the years, increasing from 52% in 2013 to 55% in 2022. This rise in homeownership coincides with a significant increase in average home prices. In 2013, the average home price was $134,255, which steadily climbed to $238,612 by 2022, representing a substantial 77.7% increase over this period. The most dramatic surge occurred between 2020 and 2021, with average home prices jumping from $185,318 to $213,579, a 15.2% increase in just one year.
Federal interest rates have played a crucial role in shaping homeownership trends in the area. The period from 2013 to 2016 saw historically low interest rates, hovering around 0.1% to 0.4%. This favorable financing environment likely contributed to the initial increase in homeownership from 52% in 2013 to 54% in 2014, where it remained stable for several years. As interest rates began to rise more significantly from 2017 onwards, reaching 2.16% in 2019, the homeownership rate managed to increase slightly to 56% by 2021, suggesting other factors were also influencing buying decisions.
Renter percentages in zip code 21613 have correspondingly decreased from 48% in 2013 to 45% in 2022. Despite this decline, average rent prices have shown an overall upward trend. In 2013, the average rent was $864, which increased to $939 by 2022, representing an 8.7% rise. The peak average rent was observed in 2021 at $1,018, before slightly decreasing in 2022. This trend in rent prices doesn't directly correlate with the declining renter percentage, indicating that other factors such as local economic conditions or housing supply may be influencing the rental market.
Looking at the most recent data, the average home price in zip code 21613 continued its upward trajectory, reaching $245,850 in 2023 and further increasing to $254,458 in 2024. This represents a 3% and 3.5% year-over-year increase respectively. Simultaneously, federal interest rates have risen dramatically, hitting 5.02% in 2023 and 5.33% in 2024, levels not seen since before the 2008 financial crisis. These high interest rates could potentially impact future homeownership rates and property values.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 21613 will continue to rise, albeit at a potentially slower rate due to the current high interest rate environment. We project average home prices could reach approximately $290,000 to $310,000 by 2029. For rent prices, the forecast suggests a moderate increase, potentially reaching an average of $1,050 to $1,100 per month by 2029, assuming economic conditions remain stable and housing supply keeps pace with demand.
In summary, zip code 21613 has experienced a gradual increase in homeownership rates alongside substantial growth in average home prices over the past decade. The rental market has seen more modest price increases despite a declining renter percentage. The recent spike in interest rates, coupled with continued home price appreciation, sets the stage for an intriguing period ahead in this housing market.
