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Zip Code 21217: Baltimore's Urban Housing Dynamics and Average Home Values
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 21217, located in Baltimore, Maryland, has experienced significant changes in its housing market over the past decade. This urban area has seen fluctuations in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local market dynamics.
The homeownership rate in zip code 21217 has shown a slight increase over the years, rising from 31% in 2013 to 32% in 2022. This modest growth in homeownership coincides with fluctuations in average home prices. In 2013, the average home price was $70,229, which decreased to $64,504 by 2016. However, the market saw a substantial recovery, with average home prices reaching $101,503 in 2022, representing a 44.6% increase from 2013 to 2022.
Federal interest rates have played a role in shaping homeownership trends in the area. The period from 2013 to 2015 saw historically low interest rates, ranging from 0.11% to 0.13%. During this time, homeownership rates remained stable at 31%. As interest rates began to rise, reaching 1.83% in 2018, there was a slight increase in homeownership to 32%. This trend suggests that despite rising interest rates, other factors may have influenced the modest growth in homeownership in zip code 21217.
The rental market in zip code 21217 has also experienced changes. The percentage of renters decreased slightly from 69% in 2013 to 68% in 2022. Average rent prices showed an overall upward trend, rising from $901 in 2013 to $900 in 2022, with fluctuations in between. Notably, the average rent peaked at $1,014 in 2021 before decreasing in 2022. The population of the zip code has declined from 40,030 in 2013 to 32,148 in 2022, which may have influenced rental market dynamics.
In 2023 and 2024, the housing market in zip code 21217 has shown some interesting developments. The average home price in 2023 was $89,670, representing a decrease from the 2022 peak. This trend continued into 2024, with average home prices further declining to $83,216. Concurrently, federal interest rates have risen significantly, 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.
Looking ahead, predictive models suggest that average home prices in zip code 21217 may continue to experience some volatility. Based on recent trends, we might expect a potential stabilization or slight decrease in average home prices over the next five years, possibly ranging between $80,000 and $90,000. Average rent prices are predicted to remain relatively stable, potentially fluctuating between $900 and $1,000 per month, influenced by factors such as local economic conditions and housing demand.
In summary, zip code 21217 has witnessed a complex interplay of factors affecting its housing market. The slight increase in homeownership rates, despite fluctuations in average home prices and rising interest rates, suggests a resilient local market. The rental sector remains dominant, with stable renter percentages and gradually increasing average rents. The recent cooling of home prices in 2023 and 2024, coupled with rising interest rates, indicates a shifting market dynamic that will likely shape housing trends in the coming years.
