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Belair-Edison: Rising Home Values Amidst Fluctuating Ownership Rates
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Belair-Edison, a historic neighborhood in Baltimore, Maryland, has experienced significant changes in its housing market over the past decade. This analysis focuses on the fluctuations in homeownership rates and average home values, reflecting broader economic trends and local market dynamics. From 2013 to 2022, Belair-Edison underwent notable shifts in its homeownership landscape. The neighborhood's owner-occupied rate started at a high of 68% in 2013, decreased to 55% by 2017, and then rebounded to 64% in 2022. Concurrent with these changes, average home prices saw substantial growth. In 2013, the average home price was $56,347, which more than doubled to $131,704 by 2022, representing a remarkable 133.7% increase over nine years. The relationship between federal interest rates and homeownership rates in Belair-Edison followed a predictable pattern. When interest rates were low at 0.11% in 2013, homeownership peaked at 68%. As interest rates rose to 1.83% in 2018, homeownership declined to 57%. The subsequent drop in interest rates to 0.08% in 2021 corresponded with a rise in homeownership to 65%, demonstrating the inverse relationship between interest rates and homeownership.
Renter percentages and average rent prices in Belair-Edison have shown interesting trends. The renter-occupied rate increased from 30% in 2013 to a peak of 42% in 2017, before settling at 36% in 2022. Average rent prices fluctuated during this period, starting at $1,304 in 2013, peaking at $1,436 in 2014, and then stabilizing around $1,266 in 2022. These trends suggest a complex interplay between housing affordability, population changes, and economic factors influencing the rental market.
In 2023 and 2024, Belair-Edison continued to see growth in average home prices. The average home price reached $134,280 in 2023 and further increased to $141,360 in 2024, representing a 5.3% year-over-year growth. This upward trend occurred despite relatively high federal interest rates of 5.02% in 2023 and 5.33% in 2024, indicating strong demand in the local housing market.
Looking ahead, predictive models suggest a continued upward trajectory for both average home prices and rent prices in Belair-Edison over the next five years. Average home prices are projected to increase by approximately 4-6% annually, potentially reaching around $180,000 by 2029. Average rent prices are expected to rise at a more moderate pace of 2-3% per year, potentially reaching $1,450-$1,500 by 2029.
In summary, Belair-Edison has demonstrated resilience and growth in its housing market. The neighborhood has experienced a rebound in homeownership rates, significant appreciation in home values, and relatively stable rent prices. The interplay between interest rates, housing affordability, and demographic shifts continues to shape the local real estate landscape, with positive trends expected to persist in the coming years.
