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Home Values and Ownership Trends in Zip Code 20814: Bethesda's Affluent Neighborhood Near D.C.
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 20814, located in Bethesda, Maryland, is a thriving suburban area known for its proximity to Washington D.C. and high quality of life. Over the past decade, this area has experienced significant changes in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market dynamics. The homeownership rate in zip code 20814 has seen a gradual decline from 57% in 2013 to 53% in 2022. This trend coincides with a substantial increase in average home prices, which rose from $679,162 in 2013 to $864,595 in 2022, representing a 27.3% increase over this period. The inverse relationship between homeownership rates and average home prices suggests that rising property values may be making homeownership less accessible for some residents.
Federal interest rates have played a significant role in shaping homeownership trends in zip code 20814. From 2013 to 2016, when interest rates were historically low (ranging from 0.11% to 0.40%), the homeownership rate remained relatively stable at around 55-57%. However, as interest rates began to rise from 2017 onwards, reaching 1.68% by 2022, the homeownership rate declined to 53%. This trend aligns with the general principle that lower interest rates tend to encourage homeownership due to more affordable financing options, while higher rates can make mortgages less attainable for potential buyers.
The renter population in zip code 20814 has grown from 42% in 2013 to 47% in 2022, mirroring the decline in homeownership. This shift has been accompanied by a significant increase in average rent prices, rising from $1,919 in 2013 to $2,406 in 2022, a 25.4% increase. The population of the zip code also grew during this period, from 27,391 in 2013 to 30,790 in 2022, potentially contributing to increased demand for rental properties and subsequently higher rent prices.
In 2023 and 2024, the average home prices in zip code 20814 showed a slight fluctuation. The average home price in 2023 was $847,685, representing a 2% decrease from 2022. However, in 2024, the average home price rebounded to $857,715, a 1.2% increase from 2023. Notably, federal interest rates rose significantly during this period, reaching 5.02% in 2023 and 5.33% in 2024, which may impact future homeownership trends in the area.
Looking ahead, predictive models suggest that average home prices in zip code 20814 may continue to rise moderately over the next five years, potentially reaching around $900,000 by 2029. Average rent prices are also expected to increase, potentially surpassing $2,600 by 2029. These projections are based on historical trends and current market conditions.
In summary, zip code 20814 has experienced a gradual shift towards a higher proportion of renters, coupled with significant increases in both average home prices and rent prices over the past decade. The interplay between federal interest rates, local population growth, and property values has shaped these trends. As the area continues to evolve, it will be crucial to monitor how these factors influence housing affordability and community dynamics in this desirable suburban location.
