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Zip Code 20629: Soaring Homeownership and Rising Home Values in Solomons, Maryland
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 20629, located in Solomons, Maryland, has experienced significant shifts in its housing market over the past decade. This coastal community has seen notable changes in homeownership rates and property values, reflecting broader economic trends and local market dynamics.
The ownership percentage in zip code 20629 has shown a remarkable upward trend, increasing from 44% in 2013 to an impressive 94% in 2022. This substantial rise in homeownership coincides with fluctuating average home prices. In 2013, the average home price was $313,382, which saw moderate growth to $337,470 by 2019. However, the market experienced a significant surge, with average home prices reaching $446,106 in 2022, representing a 42% increase from 2013.
The relationship between federal interest rates and homeownership rates in this zip code presents an interesting case. Despite historically low interest rates from 2013 to 2021 (ranging from 0.08% to 0.40%), the most significant jumps in homeownership occurred in recent years when rates began to rise. For instance, homeownership increased from 78% in 2020 to 94% in 2022, even as interest rates climbed from 0.38% to 1.68%. This suggests that local factors may have played a more significant role in driving homeownership than national interest rate trends.
Conversely, the percentage of renters in zip code 20629 has dramatically decreased from 56% in 2013 to just 6% in 2022. This decline in renters has been accompanied by a steady increase in average rent prices. In 2013, the average rent was $1,866, which rose to $2,217 by 2022, representing an 18.8% increase. Interestingly, the population has fluctuated during this period, from 219 in 2013 to 322 in 2022, which may have influenced the rental market dynamics.
Looking at the most recent data, the average home price in zip code 20629 for 2023 was $438,220, showing a slight decrease from 2022. However, the projected average home price for 2024 is $454,813, indicating a potential rebound in the market. The federal interest rate for 2023 was 5.02%, rising to 5.33% in 2024, which could impact future homebuying decisions.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 20629 will continue to rise, potentially reaching around $500,000 by 2029. This projection is based on the historical growth rate and recent market trends. For rent prices, the forecast suggests a more moderate increase, potentially reaching an average of $2,400 to $2,500 per month by 2029, assuming the current trajectory continues.
In summary, zip code 20629 has experienced a significant shift towards homeownership, with a corresponding decrease in renters. Average home prices have shown substantial growth, particularly in recent years, while rent prices have increased steadily but at a slower pace. The community's resilience in maintaining high homeownership rates despite rising interest rates suggests strong local market fundamentals. As we look to the future, both home prices and rent are expected to continue their upward trajectory, albeit at different rates, reflecting the evolving dynamics of this Maryland coastal community.
