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Zip Code 21205: Average Home Values and Ownership Trends in Baltimore's Urban Housing Market
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 21205, located in Baltimore, Maryland, has experienced significant demographic and housing market changes over the past decade. This area has seen fluctuations in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market conditions.
The homeownership rate in zip code 21205 has remained relatively stable, hovering around 32-33% from 2013 to 2022. However, this stability masks underlying shifts in the housing market. Average home prices in the area have shown considerable volatility. In 2010, the average home price was $66,048, which dropped sharply to $47,779 in 2011, likely reflecting the lingering effects of the 2008 financial crisis. The market began to recover slowly, with average prices reaching $78,366 in 2020. A significant surge occurred in 2021, with average home prices jumping to $114,412, followed by a further increase to $117,046 in 2022.
The relationship between federal interest rates and homeownership rates in this zip code doesn't show a strong correlation. Despite historically low interest rates from 2010 to 2021 (ranging from 0.08% to 2.16%), the homeownership rate remained relatively constant. This suggests that other factors, such as local economic conditions or housing availability, may have had a more significant impact on homeownership in this area than interest rates alone.
Renter occupancy has been the dominant housing tenure in zip code 21205, consistently accounting for about 67-68% of occupied housing units from 2013 to 2022. The average rent prices have shown a steady upward trend during this period. In 2013, the average rent was $846, which increased to $1,058 by 2021, representing a 25% rise over eight years. Interestingly, there was a slight decrease in average rent to $982 in 2022, despite the area's population declining from 15,418 in 2020 to 13,806 in 2022. This population decrease might typically lead to lower demand and reduced rents, but the overall trend has been upward.
Looking at the most recent data, the average home price in zip code 21205 decreased to $108,091 in 2023 and further to $107,106 in 2024. This represents a significant drop from the peak of $117,046 in 2022. Concurrently, federal interest rates have risen sharply, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may be contributing to the cooling of home prices in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 21205 may continue to experience some volatility but are likely to stabilize and potentially show moderate growth. The recent price corrections could make homeownership more attainable, potentially leading to a slight increase in the homeownership rate. Average rent prices are expected to continue their upward trajectory, albeit at a slower pace, driven by the area's high renter occupancy rate and potential improvements in local economic conditions.
In summary, zip code 21205 has demonstrated resilience in its housing market despite significant economic fluctuations. The area maintains a high proportion of renters, with steadily increasing average rent prices. Average home prices have shown volatility but experienced substantial growth in recent years before a recent correction. The interplay between homeownership rates, housing prices, and broader economic factors will continue to shape the housing landscape in this Baltimore zip code.
