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Rising Home Values and Low Ownership in Baltimore's Zip Code 21201: A Decade of Urban Housing Dynamics
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 21201, located in Baltimore, Maryland, covers an area of 1.23 square miles. This urban area has experienced notable changes in homeownership rates, average home prices, and average rent prices over the past decade. The overall trend indicates a slight increase in homeownership, fluctuating average home prices, and steadily rising average rent prices.
The homeownership rate in zip code 21201 has shown a modest increase from 12% in 2013 to 14% in 2020, before declining slightly to 12% in 2022. This trend correlates with average home prices. In 2013, the average home price was $141,894, which increased to $181,222 by 2020, corresponding with the peak in homeownership. However, despite a continued rise in average home prices to $216,188 in 2022, the homeownership rate declined. This suggests that factors beyond just home prices influence homeownership rates in this area.
Federal interest rates have played a role in homeownership trends. The period from 2013 to 2020 saw historically low interest rates, ranging from 0.09% to 0.38%. These low rates likely contributed to the increase in homeownership during this period by making mortgages more affordable. The slight decline in homeownership from 2020 to 2022 coincides with a sharp increase in interest rates from 0.08% in 2021 to 1.68% in 2022, potentially making home purchases less accessible for some residents.
Renter percentages in zip code 21201 have remained high throughout the observed period, ranging from 85% to 88%. The average rent prices have shown a general upward trend, increasing from $930 in 2013 to $972 in 2022. This represents a 4.5% increase over the period. The high renter percentage could be attributed to the urban nature of the area and the increasing population, which grew from 16,753 in 2013 to 19,074 in 2022, potentially driving up demand for rental properties.
In 2023 and 2024, the average home prices in zip code 21201 continued to rise, reaching $218,722 in 2023 and $230,964 in 2024. This represents a 6.8% increase from 2022 to 2024. Concurrently, federal interest rates have also increased significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact homeownership rates and affordability in the coming years.
Looking ahead, based on the observed trends, we can predict that average home prices in zip code 21201 will continue to rise over the next five years, potentially reaching around $260,000 by 2029. However, the rate of increase may slow due to higher interest rates. Average rent prices are also expected to continue their upward trajectory, potentially reaching $1,050 to $1,100 by 2029, driven by population growth and high demand for rental properties in this urban area.
In summary, zip code 21201 has experienced a complex interplay of factors affecting homeownership and rental markets. While homeownership rates have fluctuated, they remain relatively low compared to national averages. Average home prices have shown overall growth, particularly in recent years, while average rent prices have steadily increased. The area's high renter percentage, combined with rising population and property values, suggests a dynamic and competitive housing market that is likely to continue evolving in the coming years.
