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Rising Home Values and Shifting Ownership in Baltimore's 21206 Zip Code: A Decade of Housing Trends
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 21206, located in Baltimore, Maryland, has experienced notable shifts in homeownership rates and housing prices over the past decade. This area, with a population of 51,763 in 2022, has seen a gradual decrease in homeownership alongside fluctuating average home and rent prices.
From 2013 to 2022, the percentage of owner-occupied homes in zip code 21206 decreased from 61% to 55%. During this same period, average home prices showed a significant upward trend. In 2013, the average home price was $115,654, which steadily increased to $203,879 by 2022, representing a 76% 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 role in homeownership trends in the area. From 2013 to 2016, when interest rates were historically low (ranging from 0.11% to 0.40%), homeownership rates remained relatively stable, hovering around 58-60%. However, as interest rates began to rise more significantly from 2017 (1%) to 2019 (2.16%), homeownership rates declined slightly to 57-58%. The sharp drop in interest rates in 2020 and 2021 (to 0.38% and 0.08% respectively) did not appear to immediately boost homeownership, possibly due to economic uncertainties during the COVID-19 pandemic.
As homeownership rates declined, the percentage of renters in zip code 21206 increased from 39% in 2013 to 45% in 2022. Average rent prices have shown some volatility but generally trended upward. In 2013, the average rent was $1,145, which increased to $1,239 by 2021, representing an 8.2% increase. However, there was a slight decrease to $1,144 in 2022. The increase in renter population and generally rising rent prices suggest growing demand for rental properties in the area.
In 2023 and 2024, average home prices in zip code 21206 continued to rise, reaching $205,068 in 2023 and $211,532 in 2024. This represents a modest increase of 3.75% from 2022 to 2024. Interestingly, this growth occurred despite a significant increase in federal interest rates, which rose to 5.02% in 2023 and 5.33% in 2024. These higher interest rates could potentially slow down the rate of home price appreciation in the coming years.
Looking ahead, based on the observed trends, we can predict that average home prices in zip code 21206 may continue to rise over the next five years, but at a more moderate pace due to higher interest rates. Average home prices could potentially reach around $230,000 to $240,000 by 2029. Average rent prices are also likely to increase, possibly reaching $1,300 to $1,350 per month by 2029, driven by the growing renter population and overall housing demand in the area.
In summary, zip code 21206 has experienced a shift towards a higher proportion of renters, accompanied by substantial increases in average home prices and moderate growth in average rent prices. The interplay between federal interest rates, housing affordability, and demographic changes continues to shape the local real estate market, with a trend towards higher housing costs and a larger renter population likely to persist in the near future.
