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Zip Code 20748: Rising Home Values and Shifting Ownership Patterns in Camp Springs
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 20748, located in Camp Springs, 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 maintaining a relatively stable ownership percentage while witnessing substantial growth in both housing and rental markets. The homeownership rate in zip code 20748 has remained relatively stable, with a slight decrease from 59% in 2013 to 56% in 2022. During this same period, average home prices have shown a remarkable upward trend. In 2013, the average home price was $172,456, which steadily increased to $355,298 by 2022, representing a 106% increase over nine years. This substantial rise in home values, despite a slight decline in homeownership rates, suggests that while fewer residents are becoming homeowners, those who do own homes are seeing significant appreciation in their property values.
Federal interest rates have played a crucial role in shaping homeownership trends in zip code 20748. From 2013 to 2016, when interest rates were historically low (ranging from 0.11% to 0.40%), the homeownership rate remained relatively stable at around 56-59%. As interest rates began to rise from 2017 (1%) to 2019 (2.16%), there was a slight decline in homeownership to 54% in 2019. Interestingly, despite the sharp drop in interest rates in 2020 and 2021 (0.38% and 0.08% respectively), homeownership rates rebounded to 56%, suggesting that other factors beyond interest rates were influencing homeownership decisions in this area.
The rental market in zip code 20748 has shown a complementary trend to homeownership. As the percentage of renters increased from 41% in 2013 to 44% in 2022, average rent prices also saw an upward trajectory. In 2013, the average rent was $1,548, which increased to $1,614 by 2022, representing a 4.3% increase. This moderate rise in rent prices, compared to the more dramatic increase in home prices, may have contributed to the slight shift towards renting in the area. The population growth from 35,726 in 2013 to 38,888 in 2022 likely contributed to the increased demand for rental properties.
Looking at the most recent data, the average home price in zip code 20748 reached $358,030 in 2023 and further increased to $361,495 in 2024. This continued appreciation in home values occurs against the backdrop of rising interest rates, which stood at 5.02% in 2023 and 5.33% in 2024. These figures indicate a resilient housing market that continues to grow despite higher borrowing costs.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 20748 will continue to rise, albeit at a potentially slower rate due to higher interest rates. By 2029, average home prices could reach approximately $400,000 to $425,000, assuming a moderate annual growth rate of 2-3%. For average rent prices, we project a continued steady increase, potentially reaching $1,800 to $1,900 per month by 2029, based on historical trends and anticipated population growth.
In summary, zip code 20748 has demonstrated a robust and dynamic housing market over the past decade. Despite a slight decrease in homeownership rates, average home prices have more than doubled, indicating strong property value appreciation. The rental market has grown moderately, both in terms of the percentage of renters and average rent prices. These trends, coupled with population growth and fluctuating interest rates, paint a picture of a desirable area with a competitive housing market. As we look to the future, both the homeownership and rental markets in this zip code are poised for continued growth, albeit potentially at a more moderate pace.
