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Zip Code 21202 in Baltimore: Rising Home Values and Shifting 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 21202, located in Baltimore, Maryland, is a densely populated urban area covering 1.8 square miles. This zip code has experienced fluctuating homeownership rates and significant changes in average home and rent prices over the past decade. The area has predominantly been renter-occupied, with a recent slight increase in homeownership.
The homeownership rate in zip code 21202 has shown a modest increase in recent years. In 2013, the homeownership rate was 21%, which dipped slightly to 19% in 2015 and 2017. However, by 2022, it had risen to 23%. This upward trend in homeownership coincides with the overall increase in average home prices. In 2013, the average home price was $140,689, which steadily rose to $201,424 by 2022, representing a 43% increase over this period. This trend suggests that despite rising home prices, more residents have been able to transition into homeownership.
Federal interest rates have played a significant role in homeownership trends. From 2013 to 2016, interest rates remained below 0.5%, coinciding with a period of relatively stable homeownership rates in the zip code. As interest rates began to rise from 2017 (1%) to 2019 (2.16%), we see a slight dip in homeownership percentage to 19-20%. Interestingly, despite the dramatic drop in interest rates in 2020 and 2021 (0.38% and 0.08% respectively), homeownership rates started to climb, reaching 23% by 2022, even as interest rates increased to 1.68%.
Renter occupancy in zip code 21202 has remained high but has shown a slight decrease in recent years. In 2013, 77% of housing units were renter-occupied, which increased to 80% in 2015-2017. By 2022, this percentage had decreased back to 77%. Average rent prices have steadily increased over this period. In 2013, the average rent was $896, which rose to $1,112 by 2022, representing a 24% increase. This increase in rent prices, coupled with the slight decrease in renter occupancy, suggests that some renters may have transitioned to homeownership or moved to more affordable areas.
In 2023, the average home price in zip code 21202 slightly decreased to $200,933, while federal interest rates rose significantly to 5.02%. Moving into 2024, we see a rebound in average home prices to $206,236, with interest rates further increasing to 5.33%. This data indicates a resilient housing market in the area, with home prices continuing to appreciate despite high interest rates.
Looking ahead, based on historical trends and current market conditions, we can predict that average home prices in zip code 21202 will continue to rise moderately over the next five years. A conservative estimate would suggest an annual appreciation rate of 2-3%, potentially reaching around $230,000 by 2029. Average rent prices are also likely to continue their upward trajectory, possibly increasing by 3-4% annually, which could bring the average rent to approximately $1,300-$1,350 by 2029.
In summary, zip code 21202 has demonstrated a resilient and gradually appreciating housing market. The area has seen a slight increase in homeownership rates despite rising home prices, possibly due to periods of low interest rates and changing demographic preferences. Rent prices have also steadily increased, but at a slower rate than home prices. The interplay between federal interest rates, home prices, and rental rates will continue to shape the housing landscape in this Baltimore zip code in the coming years.
