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Zip Code 20772: Surging Home Values and Ownership in Croom, 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 20772, located in Croom, Maryland, has experienced significant changes in homeownership rates and property values over the past decade. This area has shown a strong preference for homeownership, with a notable increase in average home prices and average rent costs.
The ownership percentage in zip code 20772 has seen a steady rise from 2013 to 2022. In 2013, the homeownership rate was 84%, and by 2022, it had increased to 87%. This upward trend in homeownership coincides with a substantial increase in average home prices. In 2013, the average home price was $258,352, and by 2022, it had risen to $458,411, representing a 77.4% increase over nine years. This correlation suggests that despite rising home prices, residents in this area have maintained a strong desire for homeownership.
Federal interest rates have played a role in homeownership trends in zip code 20772. From 2013 to 2016, when interest rates were exceptionally low (ranging from 0.11% to 0.4%), homeownership rates remained stable at around 82-84%. As interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, homeownership rates actually increased to 87%. This trend suggests that other factors, such as local economic conditions or housing preferences, may have had a stronger influence on homeownership in this area than interest rates alone.
The renter percentage in zip code 20772 has shown a gradual decline from 15% in 2013 to 13% in 2022. Despite this decrease in the proportion of renters, average rent prices have risen significantly. In 2013, the average rent was $1,766, and by 2022, it had increased to $1,975, representing an 11.8% increase. This trend indicates that while fewer people are renting, those who do are facing higher costs. The population growth from 44,415 in 2013 to 53,030 in 2022 may have contributed to the upward pressure on rent prices despite the declining percentage of renters.
In 2023, the average home price in zip code 20772 reached $462,098, with federal interest rates at 5.02%. Moving into 2024, the average home price has further increased to $469,668, while interest rates have risen slightly to 5.33%. These figures indicate a continued upward trend in home values, even as interest rates have reached their highest levels in over a decade.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 20772 will continue to rise, potentially reaching around $550,000 by 2029. Average rent prices are also expected to increase, potentially surpassing $2,300 per month in the same timeframe. These projections are based on historical trends and assume relatively stable economic conditions.
In summary, zip code 20772 has demonstrated a robust housing market characterized by increasing homeownership rates and rising property values. The area has shown resilience in maintaining high homeownership levels despite significant increases in home prices and fluctuating interest rates. The rental market, while shrinking in terms of the percentage of renters, has seen substantial increases in average rent costs. These trends suggest a strong local economy and continued demand for housing in this Maryland community.
