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Average Home Values and Ownership Trends in Zip Code 21204: Towson's Resilient Housing Market
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 21204, located in Towson, Maryland, presents an intriguing case study of real estate dynamics in a suburban area. This zip code has experienced fluctuations in homeownership rates and significant increases in both average home prices and average rent prices over the past decade.
The homeownership rate in zip code 21204 has remained relatively stable, hovering around 50% from 2013 to 2022. However, there have been slight fluctuations, with the rate reaching a high of 53% in 2013 and a low of 49% in 2022. Concurrently, average home prices have shown a consistent upward trend. In 2013, the average home price was $381,929, which steadily increased to $536,110 by 2022, representing a substantial 40.4% increase over this period.
The relationship between federal interest rates and homeownership rates in this zip code is not as straightforward as one might expect. Despite historically low interest rates from 2013 to 2021 (ranging from 0.08% to 1.83%), the homeownership rate remained relatively stable rather than increasing significantly. This suggests that other factors, such as local economic conditions or housing supply, may have played a more significant role in determining homeownership rates in this area.
Renter percentages in zip code 21204 have shown slight variations, ranging from 46% in 2013 to 51% in 2022. Average rent prices have increased substantially during this period, rising from $1,569 in 2013 to $1,805 in 2022, a 15% increase. This rise in rent prices occurred despite fluctuations in the area's population, which peaked at 22,759 in 2021 before decreasing to 21,869 in 2022. The consistent increase in rent prices, even with population fluctuations, suggests a strong demand for rental properties in this area.
Looking at the most recent data, average home prices in zip code 21204 continued to rise, reaching $553,865 in 2023 and $568,447 in 2024. This represents a 3.3% and 2.6% year-over-year increase in 2023 and 2024, respectively. Notably, these increases occurred despite a significant rise in federal interest rates, which jumped to 5.02% in 2023 and 5.33% in 2024. This suggests a robust housing market in the area, capable of withstanding higher borrowing costs.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 21204 will continue to rise, albeit at a potentially slower rate due to higher interest rates. Based on historical data, we project average home prices could reach approximately $650,000 by 2029. For rent prices, the upward trend is likely to persist, potentially reaching an average of around $2,100 per month by 2029.
In summary, zip code 21204 demonstrates a resilient real estate market characterized by steadily increasing average home and rent prices. Despite relatively stable homeownership rates and recent increases in interest rates, the area has maintained strong property values. The consistent rise in both home prices and rents, even during periods of population fluctuation, indicates sustained demand for both owned and rented properties in this suburban Maryland location.
