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Home Values and Ownership Trends in Zip Code 21239: Baltimore's Resilient Real Estate 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 21239, located in Baltimore, Maryland, has experienced significant fluctuations in homeownership rates, average home prices, and average rent prices over the past decade. This area has shown resilience in its housing market, with a recent trend towards increased homeownership and rising property values. The ownership percentage in zip code 21239 has seen a notable shift in recent years. In 2013, 59% of residents were homeowners, but this figure dropped to 53% by 2019. However, there has been a reversal of this trend, with homeownership rising to 58% in 2022. This change coincides with fluctuations in average home prices. The average home price in 2013 was $115,054, which increased to $148,515 by 2019, representing a 29% rise. As homeownership rates began to recover, average home prices continued to climb, reaching $194,908 in 2022, a 69% increase from 2013.
Federal interest rates have played a significant role in homeownership trends in zip code 21239. From 2013 to 2020, interest rates remained relatively low, ranging from 0.09% to 2.16%. This period of low rates corresponded with the initial decline and subsequent recovery in homeownership rates. As interest rates began to rise more sharply in 2022 (1.68%) and 2023 (5.02%), we see a continued increase in homeownership, suggesting that residents may have been motivated to purchase homes before rates climbed further.
Renter percentages in zip code 21239 have inversely mirrored homeownership trends. The percentage of renters increased from 41% in 2013 to a peak of 46% in 2019, before declining to 42% in 2022. Average rent prices have generally trended upward during this period. In 2013, the average rent was $1,201, which increased to $1,272 by 2019, a 5.9% rise. By 2022, the average rent had reached $1,216, showing a slight decrease from the 2019 peak but still higher than the 2013 figure. The population in the zip code has fluctuated, peaking at 33,117 in 2017 before declining to 29,287 in 2022, which may have influenced rental market dynamics.
Looking at the most recent data, the average home price in zip code 21239 for 2023 was $198,824, and for 2024, it is $204,610. This represents a steady increase in property values, with a 2.9% rise from 2023 to 2024. The federal interest rate for 2024 is 5.33%, slightly higher than the 2023 rate of 5.02%, indicating a continued environment of higher borrowing costs for potential homebuyers.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 21239 will continue to rise, potentially reaching around $230,000 by 2029. This projection is based on the consistent upward trend observed since 2013. For average rent prices, we expect a more moderate increase, potentially reaching approximately $1,350 by 2029, assuming the trend of small annual increases continues.
In summary, zip code 21239 has demonstrated a resilient housing market with a recent shift towards increased homeownership despite rising home prices. The interplay between federal interest rates, homeownership rates, and property values has been evident, with low interest rates initially corresponding to declining ownership, followed by a recovery as rates began to rise. The rental market has shown more stability in recent years, with slight fluctuations in both renter percentages and average rent prices. Moving forward, the area is poised for continued growth in property values and a potential stabilization of the rental market.
