Loading Content...
Rising Home Values and Ownership Trends in Zip Code 21207: A Decade of Growth in Lochearn, Maryland
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Zip code 21207, located in Lochearn, Maryland, has experienced significant changes 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 general trend towards increased homeownership and rising property values.
The ownership percentage in zip code 21207 has shown a steady increase from 59% in 2013 to 61% in 2022. This upward trend in homeownership coincides with a substantial rise in average home prices. In 2013, the average home price was $151,969, which steadily increased to $262,646 by 2022, representing a remarkable 72.8% increase over nine years. This correlation suggests that despite rising home prices, more residents were able to transition into homeownership, possibly due to favorable economic conditions or increased local income levels.
Federal interest rates have played a significant role in shaping homeownership trends in zip code 21207. From 2013 to 2016, interest rates remained extremely low, ranging from 0.11% to 0.40%. During this period, homeownership rates increased from 59% to 61%. The low interest rates likely made mortgages more affordable, encouraging more residents to purchase homes. As interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), homeownership continued to increase, reaching 63% by 2019, suggesting a strong local housing market that could withstand moderate interest rate increases.
Renter percentages in zip code 21207 have shown a slight decline, moving from 40% in 2013 to 39% in 2022. Interestingly, average rent prices have remained relatively stable during this period. In 2013, the average rent was $1,275, and by 2022 it had slightly decreased to $1,215, a 4.7% reduction. This stability in rent prices, coupled with a growing population (from 49,009 in 2013 to 50,630 in 2022), suggests a balanced rental market that has managed to accommodate increased demand without significant price escalation.
Looking at the most recent data, average home prices in zip code 21207 continued to rise, reaching $265,853 in 2023 and $273,694 in 2024. This represents a 4.2% increase from 2022 to 2024, indicating a continued strong housing market. However, it's important to note that federal interest rates have also increased significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homeownership trends and housing affordability in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 21207 will continue to rise, potentially reaching around $300,000 by 2029. This projection is based on the consistent upward trend observed over the past decade. For rent prices, the forecast suggests a modest increase, potentially reaching an average of $1,300 to $1,350 per month by 2029, assuming the market maintains its current stability and gradual growth patterns.
In summary, zip code 21207 has demonstrated a robust housing market characterized by increasing homeownership rates and rising average home prices. The area has maintained a balanced rental market with stable average rent prices despite population growth. The recent significant increase in federal interest rates may present new challenges for potential homebuyers, but the strong local market trends suggest continued growth in property values. These factors combine to paint a picture of a resilient and dynamic housing market in Lochearn, Maryland.
