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Zip Code 20868: Burtonsville's Rising Home Values and Strong Ownership 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 20868, located in Burtonsville, Maryland, presents an intriguing real estate landscape characterized by fluctuating homeownership rates and evolving housing prices. Over the past decade, this area has experienced a general upward trend in homeownership, coupled with significant changes in average home values and rent prices.
The percentage of owner-occupied homes in zip code 20868 has shown a notable increase from 2013 to 2022. In 2013, homeownership stood at 84%, and by 2022, it had risen to 89%. This 5 percentage point increase indicates a growing preference for homeownership in the area. Concurrently, average home prices have demonstrated an overall upward trajectory. In 2013, the average home price was $538,702, and by 2022, it had climbed to $734,279, representing a substantial 36.3% increase over this period.
Federal interest rates appear to have played a role in homeownership trends in zip code 20868. From 2013 to 2016, when interest rates were exceptionally low (ranging from 0.11% to 0.40%), homeownership remained relatively stable, fluctuating between 78% and 84%. As interest rates began to rise more significantly from 2017 (1.00%) to 2019 (2.16%), homeownership in the area actually increased from 86% to 88%. This suggests that other local factors may have outweighed the impact of rising interest rates on homeownership decisions in this particular zip code.
Renter percentages in zip code 20868 have shown an inverse relationship to homeownership rates, decreasing from 16% in 2013 to 10% in 2022. Interestingly, average rent prices have exhibited significant volatility over this period. In 2013, the average rent was $1,750, peaking at $2,612 in 2017 before declining to $1,460 in 2022. This represents a 16.6% decrease in average rent from 2013 to 2022, despite the overall decrease in the percentage of renters. The population decline from 723 in 2013 to 496 in 2022 may have contributed to this rental market dynamic, potentially reducing demand for rental properties.
In 2023 and 2024, the average home prices in zip code 20868 continued their upward trend, reaching $746,568 in 2023 and $757,294 in 2024. This represents a 1.7% and 1.4% year-over-year increase, respectively. Concurrently, federal interest rates rose significantly to 5.02% in 2023 and 5.33% in 2024, marking the highest levels in over a decade.
Looking ahead, predictive models suggest that average home prices in zip code 20868 may continue to rise moderately over the next five years, potentially reaching around $800,000 by 2029. However, the rate of increase is expected to slow compared to the rapid growth seen in recent years. Average rent prices are projected to stabilize and potentially show a slight upward trend, possibly reaching $1,600 to $1,700 by 2029, assuming economic conditions remain relatively stable.
In summary, zip code 20868 has experienced a significant shift towards homeownership, with a concurrent rise in average home prices over the past decade. Despite fluctuations in federal interest rates, the area has maintained a strong homeownership trend. The rental market has seen a decrease in both the percentage of renters and average rent prices, influenced by population changes. The coming years are likely to see continued, albeit more moderate, growth in home values, while the rental market may experience a gradual recovery in prices.
