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Rising Home Values and Stable Ownership in Zip Code 21520: Accident, Maryland's Unique Housing Market
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 21520, located in Accident, Maryland, offers a unique blend of rural charm and evolving real estate dynamics. This area has experienced fluctuating homeownership rates and significant changes in average home and rent prices over the past decade, reflecting broader economic trends and local market conditions.
The homeownership rate in zip code 21520 has shown resilience, maintaining a relatively high level throughout the observed period. In 2013, the homeownership rate stood at 79%, and by 2022, it remained steady at 79%. However, there were notable fluctuations in between, with the rate peaking at 83% in 2016 before experiencing some decline. These changes in homeownership coincided with variations in average home prices. From 2013 to 2022, average home prices in the area increased substantially, rising from $176,698 to $292,517, representing a 65.5% increase over nine years.
The relationship between federal interest rates and homeownership rates in this zip code presents an interesting dynamic. Despite historically low interest rates from 2013 to 2016 (ranging from 0.11% to 0.40%), the homeownership rate actually increased from 79% to 83%. This suggests that factors beyond interest rates, such as local economic conditions or housing supply, may have played a significant role in driving homeownership in this area.
Renter percentages and average rent prices in zip code 21520 have shown an inverse relationship. As the percentage of renters decreased from 21% in 2013 to 17% in 2016, average rent prices increased from $862 to $957. However, this trend reversed in subsequent years. By 2022, the renter percentage returned to 21%, while average rent prices decreased to $632. This decline in rent prices, despite a stable renter population, could be attributed to various factors such as increased housing supply or changes in local economic conditions.
Looking at the most recent data, average home prices in zip code 21520 continued to rise in 2023, reaching $300,304. However, 2024 saw a slight decrease to $297,303, marking the first decline in over a decade. This change coincides with a significant increase in federal interest rates, which rose to 5.02% in 2023 and further to 5.33% in 2024, potentially impacting housing affordability and demand.
Applying predictive models to forecast 5-year trends suggests that average home prices in zip code 21520 may experience moderate growth, albeit at a slower pace than the rapid increases seen in recent years. The model indicates that average home prices could reach approximately $325,000 by 2029. Average rent prices are projected to stabilize and potentially see a slight increase, potentially reaching around $700 by 2029.
In summary, zip code 21520 has demonstrated resilience in homeownership rates despite fluctuations in average home prices and interest rates. The inverse relationship between renter percentages and average rent prices highlights the complex dynamics of the local real estate market. The recent plateau in home prices, coupled with rising interest rates, suggests a potential shift in the market, which could influence future homeownership trends and investment strategies in this Maryland community.
