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Lochearn: Rising Home Values and Stable Ownership in a Resilient Maryland Community
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
Lochearn, located in Maryland, is a vibrant community with a population of 27,002 as of 2022. This suburban area has experienced steady growth over the years, with its population density reaching 4,830 people per square mile. Lochearn has maintained a relatively stable homeownership rate, averaging around 69% over the past decade, while average home prices have shown a significant upward trend. Meanwhile, average rent prices have fluctuated but generally remained within a consistent range.
The homeownership rate in Lochearn has remained relatively stable, with minor fluctuations between 2013 and 2022. In 2013, the homeownership rate was 69%, and it reached its peak of 70% in 2017, 2019, and 2020. Concurrently, average home prices have shown a steady increase. In 2013, the average home price was $166,775, and by 2022, it had risen to $283,825, representing a 70% increase over this period. This trend suggests that despite rising home prices, Lochearn residents have maintained their ability to purchase homes, possibly due to factors such as income growth or favorable lending conditions.
Federal interest rates have played a significant role in homeownership trends in Lochearn. From 2013 to 2016, interest rates remained below 0.5%, coinciding with a period of relatively stable homeownership rates around 68-69%. As interest rates began to rise from 2017 (1%) to 2019 (2.16%), homeownership rates actually increased slightly to 70%, possibly due to residents rushing to purchase homes before rates climbed further. The sharp drop in interest rates in 2020 (0.38%) and 2021 (0.08%) maintained the high homeownership rate at 70% and 69% respectively, as low rates made mortgages more affordable.
Renter percentages in Lochearn have shown a slight decline over the years, from 31% in 2013 to 32% in 2022. Average rent prices have fluctuated during this period. In 2013, the average rent was $1,398, peaking at $1,398 in 2013 before declining to $1,321 in 2022. This represents a 5.5% decrease in average rent over the decade. The slight increase in renter percentage from 29% in 2019 to 32% in 2022, despite falling rent prices, could be attributed to the growing population, which increased from 25,689 in 2019 to 27,002 in 2022.
Looking at the most recent data, average home prices in Lochearn continued to rise in 2023 and 2024. The average home price reached $289,651 in 2023 and further increased to $297,123 in 2024. This represents a 4.7% increase from 2022 to 2024. Concurrently, federal interest rates have also risen significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homeownership rates and home price growth.
Applying predictive models to forecast 5-year trends, we anticipate average home prices in Lochearn to continue their upward trajectory, albeit at a potentially slower pace due to higher interest rates. By 2029, average home prices could reach approximately $340,000 to $360,000. Average rent prices, which have been more volatile, are expected to stabilize and potentially increase slightly, reaching around $1,400 to $1,450 by 2029.
In summary, Lochearn has demonstrated resilience in its housing market, maintaining stable homeownership rates despite rising home prices. The community has seen significant appreciation in property values, with average home prices increasing by 70% from 2013 to 2022. While rent prices have shown some fluctuation, they have generally remained within a consistent range. The recent rise in interest rates may pose challenges to future homeownership rates and price growth, but the strong foundation of the local housing market suggests continued stability with moderate growth in both home prices and rents over the next five years.
