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Rising Home Values and Ownership Trends in Zip Code 21557: A Rural Maryland Case Study
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 21557, located in Bier, Maryland, presents an intriguing case study of housing market dynamics. This area has experienced significant fluctuations in homeownership rates and housing prices over the past decade. The overall trend shows a slight decrease in homeownership, coupled with a substantial increase in average home prices and variable average rent prices.
The homeownership rate in zip code 21557 has seen some volatility but generally trended downward from 2013 to 2022. In 2013, the homeownership rate stood at 85%, reaching a peak of 90% in 2015 and 2016. However, by 2022, it had decreased to 83%. During this same period, average home prices showed a consistent upward trend. In 2013, the average home price was $104,753, and by 2022, it had risen to $153,381, representing a 46.4% increase over nine years. This inverse relationship between homeownership rates and average home prices suggests that rising property values may have made homeownership less accessible for some residents.
Federal interest rates have played a significant role in shaping homeownership trends in zip code 21557. From 2013 to 2016, when interest rates were exceptionally low (ranging from 0.11% to 0.40%), homeownership rates remained high, peaking at 90%. As interest rates began to rise more substantially from 2017 onwards, reaching 1.68% in 2022, homeownership rates generally declined. This trend aligns with the well-established principle that lower interest rates tend to encourage homeownership by making mortgage financing more affordable.
Renter percentages in zip code 21557 have fluctuated in tandem with homeownership rates, showing an overall increase from 15% in 2013 to 17% in 2022. Interestingly, average rent prices have not followed a consistent pattern. In 2013, the average rent was $1,043, peaking at $1,085 in 2016 before declining to $811 in 2022. This 23.2% decrease in average rent over the period is notable, especially considering the area's population decline from 2,504 in 2013 to 2,158 in 2022. The decrease in population may have contributed to lower demand for rental properties, potentially explaining the drop in average rent prices despite the increase in the percentage of renters.
In 2023 and 2024, the housing market in zip code 21557 continued its upward trajectory. The average home price reached $160,911 in 2023 and further increased to $171,698 in 2024, marking a 7.3% year-over-year growth. This significant rise occurred despite the Federal interest rate climbing to 5.02% in 2023 and 5.33% in 2024, which are the highest rates seen in over a decade.
Looking ahead, our predictive models forecast continued growth in average home prices for zip code 21557 over the next five years. We anticipate average home prices to potentially reach around $200,000 by 2029, assuming current trends persist. However, the average rent prices are projected to stabilize, with modest increases bringing the average rent to approximately $900 per month by 2029.
In summary, zip code 21557 has experienced a gradual shift towards more renters, coupled with rising average home prices and fluctuating average rent prices. The inverse relationship between federal interest rates and homeownership rates is evident, with recent high interest rates potentially impacting future homeownership trends. Despite population decline, the area's housing market has shown resilience, with consistent growth in average home values, suggesting ongoing demand for properties in this Maryland community.
