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Rising Home Values and Ownership in Zip Code 21623: Church Hill's Evolving Real Estate Landscape
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
Church Hill, located in zip code 21623 in Maryland, has experienced significant shifts in homeownership rates and housing prices over the past decade. This small town has seen a notable increase in homeownership, coupled with fluctuating average home and rent prices. The homeownership rate in Church Hill has shown a strong upward trend, rising from 76% in 2013 to 82% in 2022. This increase in homeownership coincided with a substantial rise in average home prices. In 2013, the average home price was $244,523, which grew to $367,621 by 2022, representing a 50.3% increase over nine years. The most significant jump occurred between 2020 and 2021, when average home prices surged from $298,061 to $345,674, a 15.9% increase in just one year.
Federal interest rates have played a role in shaping homeownership trends in Church Hill. The period from 2013 to 2020 saw historically low interest rates, ranging from 0.08% to 2.16%. This low-interest environment likely contributed to the increase in homeownership, as it made mortgages more affordable for potential buyers. The homeownership rate peaked at 87% in 2021 when interest rates were at a mere 0.08%, demonstrating the strong correlation between low interest rates and high homeownership rates.
Conversely, the percentage of renters in Church Hill has decreased over time, dropping from 20% in 2015 to 17% in 2022. Despite this decline in the renter population, average rent prices have shown some volatility. In 2013, the average rent was $1,336, which decreased to $1,171 in 2016 before rising again to $1,269 in 2022. The fluctuations in rent prices may be attributed to changes in the local housing market and the overall decrease in the renter population.
Looking at the most recent data, the average home price in Church Hill reached $371,885 in 2023 and further increased to $392,206 in 2024. This represents a 5.5% year-over-year increase, indicating continued growth in the local housing market. Interestingly, this growth occurred despite a significant rise in federal interest rates, which reached 5.02% in 2023 and 5.33% in 2024. This suggests that other factors, such as local demand or economic conditions, may be driving the housing market in Church Hill.
Applying predictive models to forecast 5-year trends, we can expect average home prices in Church Hill to continue their upward trajectory, potentially reaching around $450,000 by 2029. This projection is based on the historical growth rate and assumes continued demand in the area. For rent prices, the forecast suggests a more modest increase, potentially reaching an average of $1,400 to $1,500 per month by 2029, factoring in the historical volatility and the current trend of increasing homeownership.
In summary, Church Hill has experienced a significant increase in homeownership rates and average home prices over the past decade. The correlation between low interest rates and high homeownership rates was evident until recent years, where home prices continued to rise despite increasing interest rates. The rental market has shown more volatility, with a decreasing renter population but fluctuating rent prices. Looking ahead, the housing market in this zip code appears poised for continued growth, with both home prices and rent expected to increase over the next five years.
